Kenya’s Supreme Court ruled, on 20 August 2024, suspending the Court of Appeal’s recent judgment that declared the Finance Act 2023 unconstitutional. The Supreme Court implemented a conservatory order to suspend and stay most of the declarations in the High Court’s judgment that were appealed.
Kenya’s National Assembly first considered the Finance Bill 2024 on 13 May 2024. The bill received parliamentary approval on 25 June 2024, with several amendments. These include removing the proposed 16% VAT on bread, sugar transportation, financial services, foreign exchange transactions, and the 2.5% Motor Vehicle Tax. The eco levy has also been restricted to imported finished products that contribute to e-waste instead of goods manufactured in Kenya.
However, the Finance Bill 2024 appeared to be controversial, leading to widespread protests, violent clashes and the death of over 20 people. Eventually, Kenyan President William Ruto, on 26 June 2024, said he would not sign the Finance Bill 2024 into law and plans to withdraw the legislation.
The Court of Appeal’s declarations are on hold pending the hearing and determination of the consolidated appeal before the Supreme Court, scheduled for 10 September 2024 and 11 September 2024.
Consequently, the provisions of the Finance Act 2023 will remain in effect until a final decision is made.
