Why Court Rejected Request By Ruto Govt On Finance Act

The government sought to have the conservatory orders lifted so that the Finance Act could be implemented pending the determination of its legality by a three-judge bench appointed by Chief Justice (CJ) Martha Koome.

Why Court Rejected Request By Ruto Govt On Finance Act
President William Ruto signs Finance Bill 2023 into Law at State House, Nairobi on Monday, June 26, 2023. /PCS

President William Ruto's administration suffered a major setback on Thursday, July 20 after the Court of Appeal refused to issue interim orders staying the ruling by the High Court that suspended the implementation of the Finance Act, 2023.

Through former Attorney General Githu Muigai, the Government had requested the Court of Appeal to lift the conservatory orders issued by Justice Mugure Thande.

Appellate judges, Justice Mohammed Warsame, Kathurima M'Inoti and Hellen Omondi instead directed that the court will deliver a ruling on Friday, July 28.

Former Attorney General Githu Muigai appearing at the Supreme Court for IEBC during the 2022 presidential election petition. /JUDICIARY

The government sought to have the conservatory orders lifted so that the Finance Act could be implemented pending the determination of its legality by a three-judge bench appointed by Chief Justice (CJ) Martha Koome.

On Tuesday, July 18, CJ Koome appointed Justice David Majanja to be the judge to preside over this case, thus taking the lead in terms of overseeing the proceedings.

He will be supported by Justice Lawrence Mogambi and Justice Christine Meori in the three-judge bench which will set a date when the matter will be mentioned for hearing.

The appointment of the three-judge bench is evidence of the degree of importance in this case since it is touching on an Act that the Kenya Kwanza regime is relying on, in terms of its proposals, to raise much-needed revenue to fund its development projects in the form of taxes.

The High Court had refused to lift conservatory orders suspending the implementation of the Finance Act 2023, with Justice Thande ruling that the controversial act will proceed to a full trial.

“Pursuant to article 165(4) this matter is certified as raising a substantial question of law and the file is hereby transmitted to the Chief Justice for assignment of a bench of not less than three judges to hear and determine the petition,” Justice Thande ruled on Monday, July 10.

The respondents in the petition had sought abeyance (temporary suspension) of seven days to move to the Court of Appeal.

The respondents who included Treasury Cabinet Secretary Njuguna Ndugu and the Attorney General's office had argued that the Legislature, Executive and Judiciary would face uncertainty during the time the Finance Act 2023 would remain suspended.

It was further argued that the orders which suspended the implementation of the Finance Act 2023 would likely cripple the government in relation to revenue mobilisation and expenditure approval, thus the respondents' prayer to the High Court to exercise its secondary jurisdiction and suspend the conservatory orders.

The judge had on Wednesday, July 5 extended 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.

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