Kenya’s Supreme Court upholds controversial increase in tax law

A court in Kenya on Tuesday overturned a major ruling from a lower court, declaring the controversial Finance Act 2023 constitutional, effectively supporting legislation that has triggered nationwide protests over upcoming tax increases.

Earlier, the Court of Appeal had declared the act unconstitutional, pointing to issues with the public participation process during its creation.

However, the Supreme Court disagreed with this view, stating that the public had been adequately consulted, and their opinions were considered during the legislative process.

“We find that public interest leans towards granting conservatory and stay orders to protect the foundation of the consolidated appeal and maintain stability in the budget and appropriation process pending the resolution of this appeal,” the Supreme Court ruled.

“In addition, considering the public interest in this matter, we order that the consolidated appeal be scheduled for hearing as soon as possible after this ruling is delivered.”

The decision has led to mixed reactions. The government views it as a win for its fiscal policies, while many Kenyans remain worried. Opposition leaders and civil society groups have expressed their disappointment and concern.

Critics argue that the law unfairly burdens ordinary Kenyans, especially given the already high cost of living and current economic challenges.

The ruling is expected to spark further public debate and could lead to more protests.

The Supreme Court stated that the consolidated appeals will be heard virtually on September 10 and 11.