Kenyan Supreme Court Pauses Finance Act Ruling

The Kenyan Supreme Court has taken temporary action by suspending parts of the previous Court of Appeal verdict, which had found the Finance Act 2023 to be unconstitutional. This move is in reaction to appeals brought forward by the Cabinet Secretary for National Treasury and Planning and four other government representatives, challenging the Court of Appeal’s ruling.

The Finance Act of 2023 faced a significant hurdle when, on July 31, 2024, the Court of Appeal deemed it invalid due to issues with the way it had been passed, leading to notable confusion and concern over the government’s financial protocols and operational plans. This uncertainty prompted the appellants to turn to the Supreme Court for a resolution.

During its proceedings, the Supreme Court focused on the enactment process of the Finance Act, with particular attention to the extent of public involvement and compliance with Article 114 of the Constitution, which deals with financial laws.

The necessity for further examination of these concerns was acknowledged by the Court, indicating a comprehensive review would occur during the full appeal hearing. The issuance of conservatory orders by the Supreme Court was marked by an understanding of its crucial role in preserving the continuity of governmental functions and preventing any potential disruptions to public services.

“The conservatory orders are necessary to avoid potential operational disruptions in government activities,” stated the Supreme Court’s ruling, thereby pausing the effects of the Court of Appeal’s annulment of the Finance Act and ensuring the government’s operational continuity amidst ongoing legal proceedings.

Set for a speedy review in September 2024, the consolidated appeals, identified as Petitions E031, E032, and E033 of 2024, hold significant prospects for Kenyan legislative practices and the future viability of the Finance Act 2023. The legal fraternity and public alike wait with anticipation for the outcome, which promises to have significant implications on governance and lawmaking in Kenya.