Court of Appeal Lifts Order Suspending Finance Act, 2023

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

On July 28th, Justice Mohammed Warsame ruled that the Treasury Cabinet Secretary's appeal was valid. The State argued that the suspension of the Finance Act would cause confusion and crisis in the government, affecting revenue collection and expenditure approval. They also claimed that the country would face irreversible damage if the conservatory orders were not suspended, citing payroll taxes as an example. 

"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.  

However, the respondents led by Busia Senator Okiya Omtatah argued that it would be impossible to reimburse the tax, using the 16% fuel levy as an example.  Justice Warsame has overruled Justice Mugure Thande's decision to prolong the suspension of the Act, stating that it would result in an unjust imposition of taxes on Kenyans. As a result of this ruling, a three-judge panel headed by Chief Justice Martha Koome, including justices David Majanja, Lawrence Mogambi and Christine Meoli, will be responsible for resolving the matter.

Also in courts today, the murder case involving former Migori Governor Okoth Obado and two others is scheduled to continue. The trial has been ongoing for the past nine days. During the last court session, the defence team partially cross-examined the thirty-eighth prosecution witness who was a taxi driver. He testified that he had taken Sharon Otieno, who was later found murdered, and a group of men to a thicket in Homa Bay on September 3, 2018. The men claimed they had dropped her off at home, but news later broke that she had been killed.