Court Blocks Ruto's First Finance Act
The matter will be mentioned on July 5, 2023.
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The High Court has temporarily suspended the implementation of the Finance Act 2023.
High Court Judge Mugure Thande, on Friday, June 30 issued conservatory orders suspending the Finance Act in response to a petition filed by Busia Senator Okiya Omtatah.
Omtatah had moved to the High Court to challenge the contentious Act before it was assented into Law by President William Ruto, arguing that the bill which generated uproar across the country is unconstitutional and thus sought the help of the court.
The court also granted Omtatah's request to bar Ruto from enacting the Finance Act 2023 from Saturday, July 1.
Busia Senator, Okiya Omtatah. /FILE
“This matter coming up on June 30, 2023, for directions on the notice of motion dated June 29, 2023, before Honourable Justice M. Thande upon considering the same, it is hereby ordered that the application be served today (June 30, 2023) upon all parties.
“That I am satisfied that the Application meets the test for conservatory orders and I do grant prayers 2 and 3 of the Application until July 5, 2023, when the matter is scheduled for mention for directions,” read the ruling in part.
Justice Thande ordered the petitioner to serve all parties including Treasury Cabinet Secretary (CS) Njuguna Ndung'u before the end of the day, Friday, June 30, 2023.
Furthermore, she also ordered the respondents to file their responses by Tuesday, July 4, after which the High Court will enlist a hearing date.
Omtatah was joined by activists Eliud Matindi, Michael Otieno, Benson Otieno and Blair Oigoro in suing CS Ndung'u and Attorney General Justin Muturi.
Kenya Revenue Authority (KRA) acting commissioner-general Rispah Simiyu was named as an interested party in the case.
Among the issues Omtatah highlighted in his petition were the mandatory salary deductions to support President William Ruto's Affordable Housing agenda, which he argued that it was not a must for Kenyans.
The senator argued that the Senate and the National Assembly should have debated the Bill first before tabling it.
"Section 76 of the Bill threatens socio-economic rights (Article 43) to the extent that, if made law, the fund will require a 3 per cent reduction in basic salary for employees and a 3% contribution from employers, thereby reducing worker’s purchasing power as it increases business operating costs.
"Section 76 of the Bill threatens the freedom to own property (Article 40(1)) by proposing to compel civil servants to participate in a mandatory tax scheme disguised as a means to facilitate property acquisition," the Busia Senator added.
Omtatah went ahead to sue CS Ndung'u and AG Muturi arguing that they served as advisors to the current government.
"The Treasury has been sued herein for having violated Articles 3(1) and 153(2)(a) of the Constitution by presenting to the National Assembly the Finance Bill 2023 parts of which threaten to violate express provisions of the Constitution of Kenya 2010 and the principles of natural justice, and to undermine Kenya’s economic organisation," the petition read in part.
The submission came hours after President Ruto expressed admiration at Kenyans' spirited commitment to opposing the controversial Finance Bill 2023, even though he risks being inflicted a major blow in his agenda for the country.
In his Madaraka Day speech at Moi Stadium, Embu, the Head of State remarked that the Finance Bill had generated a positive and intense discourse across the country in a manner rarely seen in the tenets of Kenya's democracy in the modern generation.
"Our public discourse and political discussion and the agenda of social debate has changed for good. Substantive policy issues continue to define the national conversation well beyond the election.
"At the moment, there is a robust debate on the Finance Bill taking place everywhere in this country: Church, social places, formal and informal workplaces, all media platforms and busy markets, as well as in urban and rural gatherings," he stated.
Coincidentally, Omtatah on Sunday, May 28 threatened to move to court over the proposed mandatory contribution to the Housing Fund in the Finance Bill, in front of Ruto during an interreligious prayer gathering at Busia Stadium.
“The issue of housing, the former president had tried imposing the housing tax and I was among the people who went to court to fight it. The Finance Bill has so far violated the constitution in six ways if not corrected you will leave me no choice but to move to court,” he told the President.
The Housing Fund stirred debate with Azimio la Umoja leaders stating the Finance Bill unfairly targets a middle class that is already enduring great hardships and has the least amount of money available to pay additional taxes.
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