Kenya's Top Court Suspends 2023 Finance Law Ruling to Preserve Budget Stability

Kenya's Supreme Court suspended a lower court's ruling that declared the 2023 finance law unconstitutional. The suspension aims to maintain budget stability pending the government’s appeal next month. The finance laws are pivotal for the government’s revenue measures. President Ruto argues tax hikes are crucial for funding and debt repayment.

Kenya's Supreme Court on Tuesday halted a lower court's decision deeming the 2023 finance law unconstitutional, emphasizing the need to preserve budget stability until the government's appeal is reviewed next month.

The Court of Appeal previously ruled last year's Finance Act unconstitutional, presenting a significant setback for President William Ruto. He had retracted this year's finance bill due to substantial youth-led protests, complicating his presidency's efforts amid demands from both citizens and international lenders.

President Ruto maintains that tax increases are essential for funding development initiatives and managing public debt. The Supreme Court, prioritizing public interest, decided to grant conservatory and stay orders to ensure budgetary and appropriation stability pending the appeal's outcome. Hearings are scheduled for Sept. 10 and 11 on the law's constitutionality. Meanwhile, the government continues to operate under the 2023 law, which faces opposition due to tax hikes and was challenged following significant protests.

(With inputs from agencies.)