Nairobi — The High Court has extended conservatory orders suspending the coming into force of the Finance Act 2023 to Monday.
In directions issued Wednesday following a day-long virtual hearing during which activists who filed the case petitioned the court to pronounce itself on contempt of its initial orders, Justice Mugure Thande said she will give directions on Monday.
During the virtual appearance, Prof Githu Muigai, former Attorney General appearing for the State, challenged the petition saying it risked plunging the country into a financial crisis.
He argued that granting orders sought by Senator Okiya Omtatah and six other activists would in fact trigger a constitutional crisis.
"What the petitioners have done is that they have precipitated a constitutional crisis without precedent," Muigai told the court.
He told the judge that the seven petitioners had mislead the court.
"By misleading the court to suspend the Finance Act 2023, they have compromised all other budget statutes including the Appropriation Act 2023."
Omtatah who was joined by Rarieda MP Otiende Amollo dismissed Muigai's position as baseless.
Contested provisions
The High Court suspended the Finance Act 2023 on June 30, a day after it was scheduled to come into force amid uproar over tax proposals including the doubling of Value Added Tax (VAT) on fuel.
Justice Thande then directed the State to file a response by Tuesday, July 4.
The orders effectively stopped the government from levying any taxes under the new Act, including the 8 per cent VAT increment on fuel set to take effect Saturday.
The Energy and Petroleum Regulatory Authority (EPRA) however proceeded to effect an eight per cent increment in prices of petrol, diesel and kerosene, adjusting the VAT rate from 8 per cent to 16 per cent.
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President William Ruto signed the Bill on June 26 after the National Assembly adopted his tax proposals despite concerns from civil society and the Opposition Azimio coalition.
Azimio leader Raila Odinga has already announced protests against the new Act from July 7, accusing President William Ruto of ignoring the plight of Kenyans.
"The president does not listen to Kenyans. He does not care and that is why we must go to the streets because that is the only language he understands," Raila told a rally in Kamukunji grounds on Tuesday.
In the application before the court, petitioners contested the passage of twenty-two sections of the Act "which were not in the Bill but were introduced on the floor of the National Assembly."
They further challenged adoption of another 40 provisions without the input of the Senate arguing the said tax proposals required an endorsement by the Senate.
The petitioners also challenged public participation in the law-making process as being inadequate.
