The High Court has temporarily suspended the implementation of the Finance Act, 2023 following a petition filed by Busia Senator Okiya Omtatah.
Lady Justice Mugure Thande ruled in Omtatah’s favor on Friday June 30 stating she was satisfied that the application met a threshold for conservatory orders.
“That I am satisfied that the Application meets the test for conservatory orders and I do grant prayers 2 and 3 of the Application until 5.7.23 when the matter is scheduled for mention for directions,” ruled Justice Thande.
Thande also prohibited the respondents and interested parties, as well as their representatives, from enforcing the Finance Act, 2023.
She further instructed that all parties be served with the applications today, Friday, June 30, and that replies be submitted and served by July 4, 2023.
Omtatah in his updated petition claims that the Finance Bill contains proposals that have nothing to do with generating income and that hinder the Senate’s work to protect the interests of counties and their governments.
“Forcing employees to contribute an amount of money based on the applicable blanket deductible percentage without consideration of their existing contractual obligations on their salaries is not reasonable,” says Omtatah.
The Busia senator wants the court to overturn some sections of the original Finance Act 2023 that were not approved by the Senate, claiming that the Speaker of the National Assembly violated Article 110(3) of the Constitution by introducing the Finance Bill 2023 in the National Assembly without first determining, in collaboration with the Speaker of the Senate, whether the Bill concerned county government.
President William Ruto signed the Finance Bill 2023 into law on Monday at State House, Nairobi.
The Act was to take effect from Saturday July 1,2023.
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