Kenya’s Supreme Court on Tuesday overturned an appeals court decision that had nullified the 2023 finance law, marking a significant win for President William Ruto’s administration. The government had relied on this law to continue tax collection after withdrawing this year’s finance bill amid widespread protests.
In its ruling, 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 included increased fuel taxes, a housing levy, and higher income tax rates, prompting protests that resulted in over 60 deaths in June and July. In response to the unrest, Ruto withdrew the bill, which also delayed a disbursement from the International Monetary Fund (IMF). Ruto has argued that the tax increases are essential for funding development and managing Kenya’s debt.
The IMF’s executive board is scheduled to review a new funding tranche on Wednesday, following Kenya’s compliance with the Fund’s requirements.
