Court rules Finance Act 2023 unconstitutional

The Court of Appeal has declared the Finance Act 2023 Unconstitutional citing the process leading to its enactment as flawed.

In the judgment, Justices Kathurima M’inoti, Agnes Murgor and John Mativo said the various sections in the Act introduced post-public participation were not subjected to fresh public participation.

It ruled that the government erred in not conducting fresh public participation when amending the Income Tax, Value Added Tax, Excise Duty and Retirement Benefits Act among others fresh public participation was not conducted.

The 2023 version was challenged in court after the government used it to double the value added tax on fuel, introduce a housing tax, and raise the top personal income tax rate, among other measures.