Kenya's Finance Law Declared Unconstitutional: Government Faces New Challenge

Kenya's Court of Appeal has ruled the government's 2023 finance law unconstitutional. This follows violent protests and a political battle over tax hikes and new levies. The government, led by President William Ruto, faces further scrutiny and legal challenges as it battles a heavy public debt and tries to fund development programs.

Kenya's Court of Appeal declared the government's 2023 finance law unconstitutional on Wednesday, marking a significant setback for President William Ruto's administration. The ruling comes after the government's finance bill faced fierce opposition, leading to violent street protests.

The finance bills, usually presented to parliament at the start of each financial year, outline the government's revenue-raising strategies, including tax increases and new levies. The 2023 law faced legal challenges after the Ruto administration doubled the value-added tax on fuel, introduced a housing tax, and raised the top personal income tax rate, sparking widespread dissent.

The court's decision followed an appeal against an earlier High Court ruling, which had maintained most of the finance bill except for the housing levy. The government had passed a new law to continue collecting the housing tax, which is also under legal scrutiny. President Ruto's administration, relying on the 2023 finance law after withdrawing this year's bill, has not yet commented on the latest ruling.

(With inputs from agencies.)