COFEK moves to court to block Finance Bill 2026 provisions, cites constitutional breaches

In the petition filed through its Secretary General Stephen Mutoro, COFEK is seeking conservatory orders to stop the enactment and enforcement of the contested provisions pending the hearing and determination of the case.

According to court documents, the federation argues that the legislative process is at an advanced stage, creating an imminent risk that the contested provisions could be enacted before the constitutional questions raised are properly considered by the court.

"The impugned legislative process is active, ongoing and approaching the final stages of parliamentary consideration, thereby creating an imminent risk that the impugned provisions may be enacted into law before the constitutional questions raised herein are considered by this Honourable Court," reads the document.

COFEK contends that the proposed amendments raise weighty constitutional concerns touching on consumer protection, privacy rights, public participation, fair administrative action and equitable taxation.

Key provisions under challenge include new tax obligations on digital payment systems and scrap metal transactions, the removal of certain VAT exemptions and zero-rated supplies, the introduction of virtual asset reporting requirements, and the expansion of tax authorities' powers through proposed anti-tax avoidance and tax assessment measures.

"Further, certain of the impugned provisions are, on their face, incapable of constitutional implementation and threaten immediate constitutional injury the moment they are enacted and brought into operation," the federation claims.

If enacted, COFEK argues, the provisions would impose immediate financial, regulatory and compliance burdens on consumers, businesses, investors and other stakeholders across the country.

The federation also warns that some of the alleged constitutional violations — including concerns over public participation, privacy safeguards and Kenya's international obligations — may not be capable of effective remedy once the law takes effect.

COFEK has asked the court to issue conservatory orders preserving the subject matter of the petition while the constitutional questions are heard and determined