Ruto Forced To Wait Longer On First Finance Act

Justice Thande is expected on July 10 to deliver the final ruling and directions on the petition.

Marvin Chege Marvin Chege
Jul 5, 2023 - 17:21 Updated: Jul 5, 2023 - 17:22
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Ruto Forced To Wait Longer On First Finance Act
President William Ruto signs Finance Bill 2023 into Law at State House, Nairobi on Monday, June 26, 2023. /PCS

The High Court, through Justice Mugure Thande, on Wednesday, July 5 extended conservatory orders suspending the implementation Of the Finance Act 2023.

The judge issued the orders which stop the National Treasury from implementing the controversial Act until Monday, July 10.

She heard submissions from Busia Senator Okiya Omtatah, Rarieda MP Otiende Amollo, Solicitor General Shadrack Mose, and Lawyer Githu Muigai who was representing CS Ndung'u.

Outside the Milimani Law Courts. /FILE

Justice Thande is expected on July 10 to deliver the final ruling and directions on the petition.

“Hon Mugure Thande has extended the conservatory orders until 10th July 2023, at 2:00 PM when the ruling will be delivered & directions given. Note: Implementation of the Finance Act 2023 still stands suspended, in accordance with the orders issued on 30th June,” Omtatah tweeted.

Muigai had argued that the government will soon be unable to pay international commitments as well as pay salaries of government employees, accusing Omtatah of misleading the court into believing there was no consequence in extending the suspension until the petition is determined.

However, Amollo rebutted by stating that the government can still collect taxes through the use of the Finance Act 2022 which does not include contentious provisions such as the 16 per cent Value Added Tax (VAT) on Fuel and Housing Levy.

Justice Thande on Friday, June 30 issued conservatory orders suspending the Finance Act in response to a petition filed by 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.

“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.

President William Ruto signed the Finance Bill 2023 into law on Monday, June 26 and was to take effect on July 1. 

Despite the court order, the Energy and Petroleum Regulatory Authority (EPRA) increased fuel prices to align with the provisions of the Finance Act 2023, among them the doubling of fuel VAT to 16 per cent from 8 per cent.

Activist Okiya Omtatah presenting his petition at the Supreme Court on Friday, September 2, 2022. /ZAKHEEM RAJAN.FILE

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