RUTO is not going down without a fight as he takes the rejected Finance Act 2023 battle to the Supreme Court

 

Saturday, August 3, 2024 – The government of President William Ruto has taken the rejected Finance Act 2023 battle to the Supreme Court even as Kenyans continue to celebrate the Court of Appeal ruling that declared the Act unconstitutional.

Citizens, long burdened by escalating taxes, celebrated a rare victory against government overreach. However, the jubilation may be short-lived as the government plans to appeal the ruling, which has created a Ksh 510 billion gap in the national budget for the current fiscal year.

National Treasury filed a notice of appeal with the Supreme Court, challenging the Court of Appeal’s decision.

The Treasury argues that overturning the Finance Act 2023 threatens to slash Ksh164 billion from its anticipated revenue — a critical blow to an already strained fiscal framework.

The stakes are extraordinarily high. The Finance Act 2023 has been instrumental in reshaping Kenya's tax landscape.

It imposed a series of tax hikes, including doubling VAT on fuel from eight to 16 per cent and introducing new income tax bands for high earners.

With the Act now voided, the government faces not only the loss of this revenue but also the logistical nightmare of reverting to previous tax laws, which could further complicate revenue collection and fiscal planning.