In a recent landmark decision, the Supreme Court of Kenya has temporarily allowed the implementation of the Finance Act 2023, despite a ruling from the Court of Appeal that declared it unconstitutional. This decision has sparked debates across the country, raising questions about how we ended up using the 2023 Finance Act, the fate of the 2024 bill, and the public protests that have gripped the nation.

The Journey to the Finance Act 2023

To understand the significance of this ruling, it’s essential to look back at how we got here. The Finance Act 2023 was introduced as part of the government’s strategy to address the growing fiscal deficit. The Act proposed several new tax measures, including the controversial 16% VAT on fuel, a mandatory housing levy, and higher taxes on digital services and mobile money transactions.

However, the way this bill was passed caused an uproar. Many Kenyans felt that the government pushed the bill through Parliament without adequate public participation, a violation of the Constitution. Protests erupted across the country, with citizens expressing their frustration over the increased cost of living and the perceived disregard for their voices in the legislative process.

The 2024 Finance Bill: An Escalation of Tax Measures

In response to the widespread criticism of the 2023 Act, the government introduced the Finance Bill 2024, which aimed to address ongoing fiscal challenges by proposing additional tax measures. While the 2024 bill included some provisions for greater public involvement, it also proposed new taxes that sparked further controversy. The bill faced significant resistance, with many viewing it as a continuation of the government’s efforts to increase revenue at the expense of ordinary Kenyans.

Despite these changes, the 2024 bill failed to gain the necessary political support and was effectively shelved, leaving the government in a difficult position and reliant on the 2023 Finance Act to generate revenue.

Why Are We Still Using the 2023 Finance Act?

With the 2024 Finance Bill effectively shelved, the government found itself relying on the 2023 Finance Act to generate revenue. However, this reliance was soon challenged in court. In late 2023, the High Court declared parts of the Act unconstitutional, and the Court of Appeal later struck down the entire Act. Facing a potential revenue crisis, the government appealed to the Supreme Court, which issued an interim stay on the Court of Appeal’s decision, allowing the 2023 Act to remain in effect while the case is being reviewed.

The Role of Protests in Shaping the Debate

Public protests have played a critical role in shaping the debate around the Finance Act 2023 and the failed 2024 bill. The widespread demonstrations against the 2023 Act reflected a deep dissatisfaction with the government’s approach to taxation and fiscal policy. Kenyans from all walks of life took to the streets, demanding more transparency, fairness, and public participation in the legislative process.

These protests forced the government to reconsider its approach, leading to the introduction of the 2024 Finance Bill. However, the continued unrest and lack of trust in the government’s intentions ultimately prevented the bill from gaining traction.

The Supreme Court’s Reasoning: What Does This Mean for Kenyans?

The Supreme Court’s decision to temporarily uphold the Finance Act 2023 has far-reaching implications. On one hand, it ensures that the government can continue collecting much-needed revenue to fund public services. On the other hand, it prolongs the implementation of a law that many Kenyans feel is unfair and unconstitutional.

As we await the Supreme Court’s final ruling, scheduled for September 2024, the future of Kenya’s fiscal policy hangs in the balance. The decision will not only determine the fate of the Finance Act 2023 but also set a precedent for how similar cases will be handled in the future.

For now, Kenyans are left to navigate the economic challenges posed by the continued implementation of the 2023 Act, all while hoping for a more inclusive and transparent approach to future legislation.

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