The Court of Appeal’s ruling that the Finance Act, 2023, is unconstitutional has been partially suspended by conservatory orders issued by the Supreme Court of Kenya.
This ruling is in response to challenges against the Court of Appeal’s ruling that were submitted by the Cabinet Secretary for National Treasury and Planning and four other government officials.
The Court of Appeal annulled the Finance Act of 2023, alleging procedural faults in its enactment, on July 31, 2024, dealing a serious blow to the legislation that had been passed earlier this year.
The appellants petitioned the Supreme Court for relief because the appellate court’s ruling created a great deal of ambiguity regarding the government’s operational and budgetary frameworks.
During the Supreme Court’s proceedings, concerns regarding the legislative procedure used to pass the Finance Act predominated.
The Supreme Court’s discussions were dominated by concerns about the legislative procedure that yielded the Finance Act, specifically the degree of public involvement and compliance with Article 114 of the Constitution, which regulates financial legislation.
The Supreme Court underscored the significance of upholding governmental stability and preventing disturbances in public administration when bestowing conservatory orders.
The government is able to carry on with its activities while the legal dispute is pending because to the orders, which essentially suspend the Court of Appeal’s judgments that the Finance Act was invalid.
An accelerated hearing for the aggregated appeals—Petitions E031, E032, and E033 of 2024—is set for September 2024.
The result of this hearing is highly awaited since it would impact Kenya’s legislative process and the future of the Finance Act, 2023 in significant ways.
