Kenyan court announces finance regulation unconstitutional
(MENAFN) On Wednesday, Kenya’s Court of Appeal declared the Finance Act 2023 unconstitutional, a significant blow to the government’s recent fiscal policies. The court's ruling followed intense public scrutiny and protests that led to the government's withdrawal of the budget legislation earlier this year.
The decision came after a legal challenge argued that the enactment of the Finance Bill was marred by procedural defects, particularly the lack of adequate public participation in its legislative process. The judges—Kathurima M’Inoti, Agnes Murgor, and John Mativo—found that the legislative procedure used to pass the Finance Act violated constitutional requirements.
Central to the court’s ruling was Section 84 of the Finance Act, which had amended the Employment Act to introduce a new housing levy. This levy was contentious as it differentiated between formal and informal sector workers, a distinction the court deemed discriminatory. The judges emphasized that the Act's implementation was flawed because parliament failed to address public feedback comprehensively, as required by the constitution. This failure rendered the entire Finance Act unconstitutional, according to the court.
The court’s decision also has implications for the government’s broader housing policy. A separate legal challenge concerning the Affordable Housing Act remains pending in the High Court, reflecting ongoing disputes over Kenya’s housing reform efforts. Last November, the High Court had issued orders halting the implementation of the housing levy, arguing that it lacked a solid legal framework. This decision was upheld by the Court of Appeal on January 26, exacerbating tensions between President William Ruto’s administration and the judiciary.
The ruling underscores the judiciary's critical role in ensuring that legislative processes adhere to constitutional principles and highlights the importance of public involvement in shaping national policies. As Kenya navigates these legal and political challenges, the outcome of the ongoing legal cases will be pivotal in shaping the future of the country’s economic and social policies.
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