The Court of Appeal has refused to issue interim orders to lift the High Court ruling that suspended the implementation of the Finance Act 2023.
Representing the State on Thursday, July 20, former Attorney General Githu Muigai requested the Court of Appeal to lift the conservatory orders. High Court Judge Mugure Thande had issued the orders based on a case filed by Busia Senator Okiya Omtatah.
However, the appellate judges, Justice Mohammed Warsame, Kathurima M’Inoti, and Hellen Omondi, directed that a ruling on the matter will be delivered on Friday, July 28.
The government sought to lift the conservatory orders to enable the implementation of the Finance Act2023. The former AG wanted the immediate lifting of the orders pending the determination of their legality by an extended bench appointed by Chief Justice Martha Koome.
On June 30, High Court Judge Mugure Thande barred Treasury Cabinet Secretary Njuguna Ndung’u and Attorney-General Justin Muturi from implementing the Act until a case filed by Busia Senator Okiya Omtatah is decided.
In arguing for lifting the conservatory orders, Lawyer Githu Muigai contended that the High Court had handled the matter unprocedurally. He added that the court had engaged in judicial overreach while delivering the ruling.
Muigai further claimed that the High Court violated the separation of powers between Parliament, the Judiciary, and the Executive when suspending the implementation of the Finance Act.
Lawyer Kiragu Kimani, also representing the State, stated that the government might seek to recover the tax accrued between July 1, 2023, when the Act was supposed to take effect, and the date the verdict will be issued, in case Omtatah’s petition is rejected.
Omtatah, who petitioned for the suspension of the Act, argued that it contained amendments affecting the mandate of Senators in protecting the interests of counties.
The Senator claimed that the National Assembly failed to consult the Senate before passing the Finance Bill 2023. According to the Senator, President William Ruto signed the bill into law without following due process.
The State, however, countered his argument, informing the court that the National Assembly had passed the Act constitutionally as a money bill that did not require the Senate’s input.
In a rejoinder, Omtatah accused the government of contempt. He emphasized that the government had already ignored the suspension of the 16 % Value Added Tax (VAT) on petroleum products when it increased fuel prices on June 30, 2023.
Omtatah suggested that the appeal filed at the Court of Appeal could be perceived as a mockery of justice.
Meanwhile, Catholic bishops have called upon President William Ruto to repeal the Finance Act of 2023. They have further asked the government to devise new measures that align with the current economic situation.
