Kenya’s Supreme Court overturned a Court of Appeal decision on Tuesday that had previously nullified the 2023 finance law, marking a win for President William Ruto’s administration. The 2023 finance law has been essential for the government’s tax collection efforts, particularly after the recent withdrawal of this year’s finance bill following widespread protests.
“We hereby set aside the Court of Appeal’s finding declaring the entire Finance Act 2023 unconstitutional,” the Supreme Court ruled.
The law, challenged in court after opposition-led protests, includes tax hikes such as a doubled VAT on fuel, a new housing levy, and an increased top personal income tax rate. The protests against these measures turned deadly in June and July, resulting in over 60 deaths, and forced Ruto to withdraw the current year’s finance bill soon after its passage.
Ruto has argued that the tax increases are vital for funding development projects and managing Kenya’s public debt. The International Monetary Fund (IMF) is also expected to approve a new funding tranche for Kenya this week, as the country has met the IMF’s loan requirements.
