Kenya’s Supreme Court overturns Finance Act, 2023 ruling in win for government

By Andrew Wasike

NAIROBI, Kenya (AA) - The Supreme Court of Kenya upheld the Finance Act, 2023, on Tuesday, overturning a decision by the Court of Appeal that nullified the legislation on constitutional grounds.

"The preliminary objection on this Court’s jurisdiction is overruled. We hereby set aside the Court of Appeal’s finding declaring the entire Finance Act, 2023 unconstitutional," said the Supreme Court's ruling in a significant win for the government.

The decision confirms the legality of Finance Act, 2023, which has been a focal point of national debate and public demonstrations.

Finance Act, 2023, which proposed tax increases on essential items like fuel to expand the government's revenue base, had faced widespread public backlash since its inception, culminating in nationwide protests.

Major unrest in June and July saw buildings set ablaze and more than 60 killed in clashes, according to authorities.

​​​​​​​President William Ruto in response withdrew a Finance Bill, 2024, amid the unrest. The withdrawal meant that the provisions in Finance Act, 2023, were kept in place.

Ruto’s administration has continued to defend Finance Act, 2023, as essential for economic stability and addressing public debt.