Kenya’s Supreme Court has reversed an appeal court ruling on Tuesday that had invalidated the 2023 finance law, marking a win for President William Ruto’s government.
The administration had depended on the 2023 law to maintain tax collection following the withdrawal of this year’s finance bill in response to widespread protests.
The Supreme Court stated, “We hereby set aside the Court of Appeal’s finding declaring the entire Finance Act 2023 unconstitutional.”
The 2023 finance law which raised fuel taxes, implemented a housing levy, and increased the highest income tax rates, sparked protests and unrest led by the opposition, resulting in over 60 deaths in June and July. In reaction to this, Ruto decided to withdraw the bill for this year, which delayed a disbursement from the International Monetary Fund (IMF).
Ruto argues that the tax increases are essential for financing development and tackling Kenya’s debt. The IMF’s executive board is scheduled to evaluate the new funding tranche on Wednesday, following Kenya’s adherence to the Fund’s stipulations.
