Kenya’s Supreme Court reverses decision that nullified the 2023 Finance Law

Tuesday, Kenya’s Supreme Court overturned an appeals court’s decision to throw out the 2023 finance law. This was a win for the government after protests forced President William Ruto to pull this year’s finance bill.

The main way the government raises money is through finance bills. After rolling back this year’s laws, Ruto’s administration has been depending on the 2023 finance law to keep collecting taxes.

The Supreme Court said in its decision, “We hereby set aside the Court of Appeal’s finding that the entire Finance Act 2023 is unconstitutional.”

After protests led by the opposition last year, the 2023 law was challenged in court. This was because Ruto’s government used it to do things like double the value-added tax on fuel, add a housing levy, and raise the top personal income tax rate.

When Ruto’s government took over in September 2022, they tried to raise taxes again this year. This made a lot of people angry, and in June and July, more than 60 people were killed in protests.

Ruto had to pull this year’s version of the finance law soon after it was passed by the national assembly because of the unrest. This also caused the International Monetary Fund to delay approving a new loan amount.

Ruto has said that the tax hikes are needed to help pay for growth projects in Kenya, which has the biggest economy in East Africa, and to get rid of the country’s huge debt.

On Wednesday, the IMF’s executive board will meet to accept the new loan. This comes after Kenya met the goals set by the IMF during a review of its loan program.

In July, Kenya’s Court of case said that the 2023 finance law was illegal. However, the highest court put the decision on hold until it could hear the government’s case.