Supreme Court suspends ruling that declared Finance Act, 2023 unconstitutional

This decision comes in response to appeals filed by the Cabinet Secretary for National Treasury and Planning, along with four other government officials, against the Court of Appeal's decision.

The Finance Act of 2023, which was passed earlier this year, suffered a major setback on July 31, 2024, when the Court of Appeal invalidated it, citing procedural flaws in its enactment.

The appellate court's decision caused widespread uncertainty about the government's financial and operational frameworks, prompting the appellants to seek relief from the Supreme Court.

Concerns about the legislative process used to enact the Finance Act dominated the Supreme Court's deliberations, particularly the level of public participation and adherence to Article 114 of the Constitution, which governs financial legislation.

The Court acknowledged that these issues require additional judicial scrutiny and should be thoroughly examined during the full hearing of the appeals.

In granting the conservatory orders, the Supreme Court emphasised the importance of maintaining governmental stability and avoiding disruptions in public administration.

The orders effectively stay the Court of Appeal's declarations that nullified the Finance Act, allowing the government to continue its operations while the legal battle plays out.

"The conservatory orders are necessary to avoid potential operational disruptions in government activities," the Supreme Court noted in its ruling. 

The consolidated appeals, which include Petitions E031, E032, and E033 of 2024, are scheduled for an expedited hearing in September 2024.

The outcome of this hearing is eagerly anticipated, as it will have far-reaching consequences for Kenya's legislative process and the future of the Finance Act, 2023.