Judiciary
The Supreme Court on Tuesday overturned the Court of Appeal’s decision on the controversial Finance Act 2023.
The Apex court in a ruling stated that Parliament adhered to the required legislative process of public participation when Finance Bill, 2023 was enacted.
“The Bill was subjected to public participation which was adequate and satisfactory taking into account the circumstances of enacting a Finance Act. To that extent, we find there was no basis to declare the entire Act unconstitutional.
“In particular, we find that the Bill underwent the concurrence process under Article 110(3) of the Constitution; the Bill, being a money Bill, did not require consideration by the Senate and was subjected to public participation, which was adequate and satisfactory,” the court stated.
The Court of Appeal had ruled that the 21 Sections of the Act, introduced by the National Assembly post the public participation phase, was unconstitutional.
Judges said the process leading to the enactment of the Finance Act, 2023 was fundamentally flawed and in violation of the Constitution as it was done without public participation.
“We hereby issue a declaration that the enactment of the Finance Act, 2023 violated Articles 220 (1) (a) and 221 of the Constitution as read with sections 37, 39A, and 40 of the PFMA which prescribes the budget-making process, thereby rendering the ensuing Finance Act, 2023 fundamentally flawed and therefore void ab initio and consequently unconstitutional,” a three-judge bench comprising of Kathurima M’Inoti, Agnes Murgor and John Mativo ruled on July 31.
A total of 11 petitions had been lodged before the High Court by the 49 respondents, all of which challenged the constitutionality of the Finance Act, of 2023.
On August 20, 2024, the Supreme Court issued a stay of execution suspending the orders of the Court of Appeal pending the hearing and determination of the substantive appeal by the Apex court.
Also Read: Supreme Court Suspends Court Of Appeal Decision Nullifying Finance Act 2023
