Second Order Suspending Finance Act Implementation Issued

An order was issued on Friday by the High Court, preventing the enforcement of the Finance Act 2023. 

This follows an application presented by Peter Agoro, arguing that the Finance Bill 2023 was based on an illegitimate basis and thus contravenes the Constitution. Judge Mugure Thande made the ruling on June 30, 2023. In the first application, orders were granted by Justice Thande in a case filed by Busia Senator Okiya Omtatah, who contended that the Senate had not been included in the Act. 

The two matters will be discussed on July 5 for further instructions. Omtatah explained that the Finance Act includes revisions to many laws that have nothing to do with generating income and those that affect the functions of the Senate to protect the interest of counties and their governments. He further pointed out that it is a required step that the Speaker of one House of Parliament must get the consent of the Speaker of the other House of Parliament before introducing the Bill for consideration in the originating House.

 “Forcing employees to contribute an amount of money based on the applicable blanket deductible percentage without consideration of their existing contractual obligations on their salaries is not reasonable,” Omtatah said. 

The National Assembly acted violated Article 110(3) of the Constitution by introducing the 2023 Finance Bill into the Assembly without first getting an agreement with the Senate Speaker on whether or not the Act concerned the county government. Parts of the Act were to be rolled out on July 1.