Justice Mugure Thande extended an earlier order halting the implementation of the country’s recently approved Finance Act 2023.
Busia senator Okiya Omtatah, Eliud Matindi, Michael Otieno, and four others filed a petition challenging the constitutionality of the Finance Act 2023.
They argue that the Act was passed without the concurrence of both Speakers of the National Assembly and Senate, as required by the Constitution.
They also argue that the tabling of the Finance Bill was done without following due procedure adding that the housing levy, which compels employers and employees to pay 1.5% each, is unconstitutional because the Constitution limits the national government’s role in housing to developing a housing policy.
Cabinet Secretary Njuguna Ndung’u argued that the conservatory order could halt government operations by suspending budgetary steps.
The Finance Act 2023 introduces several new taxes, including a 1.5% tax on content creators and a 3% tax on crypto traders.