July 1, 2024

Omtatah vows to shoot down Parts of Finance Act after Court of Appeal lifts suspension

3 min read
Omtatah vows to shoot down Parts of Finance Act after Court of Appeal lifts suspension

Court of Appeal lifts orders barring the implementation of the controversial Finance Act, 2023

Court of Appeal lifts orders barring the implementation of the controversial Finance Act, 2023.

Court of Appeal has lifted the orders barring implementation of Finance Act 2023 pending the hearing and determination of the appeal. 

In a ruling delivered on Friday, July 28, the court noted that there will be serious irreversible economic consequences if the stay of the conservatory orders is not granted.

“The upshot of our decision is that the application has merit and the same is allowed as prayed with the effect that the order made on July 10, 2023, suspending the Finance Act 2023, and the order prohibiting the implementation of the Finance Act 2023, be and is hereby lifted pending the hearing and determination of the appeal. Costs shall abide the outcome of the appeal,” read part of the ruling. 

The government had sought the abeyance of the orders suspending the Finance Act, noting that it was unclear what would happen to the Legislature, Executive, and Judiciary during the time when the Finance Act 2023, remained suspended.

The respondents including Treasury Cabinet Secretary Njuguna Ndugu and the Attorney General’s office argued that the orders would bring crisis to the government in relation to revenue mobilisation and expenditure approval.

Justice Mohamed Warsame, Kathurima M’Inoti, and Hello Omondi had set the date of ruling on Friday after Treasury CS Njuguna Ndungu said the suspension of the Act is affecting government operations.

Ndungu pleaded with the court saying there will be a budgetary crisis if the order is not lifted.

The respondents, led by Busia Senator Okiya Omtatah argued that the reimbursement of the tax is impossible, providing an example of the 16 per cent fuel levy.

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Meanwhile, Omtatah has vowed to continue fighting against the Finance Act 2023.

He explained that his focus now shifts to ensuring that the contentious sections of the Finance Act 2023 are quashed during the full hearing and determination of the case.

“We will not give up until the Finance Act 2023 is repealed or entirely quashed by the Court because it contains provisions which are parallel to the Constitution,” Okiya stated.

In particular, the activist argued that Finance Act 2023, particularly the provisions on Housing Levy extensively violate the right to equality and the right to property.

“No one should be forced to contribute money in a manner that suggests that the citizens are fundraising for the government. We will oppose it before the Court of Appeal,” Okiya noted.

“The State was not going to suffer prejudice even if the Act remained suspended but in their wisdom, the Court of Appeal Justices took the contrary view,” the Busia Senator explained.

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