IN a significant development, Kenya’s High Court has suspended the implementation of a newly signed finance law that would have doubled fuel tax and introduced new taxes. The court’s decision came on Friday in response to a case filed by an opposition senator challenging the constitutionality of certain aspects of the law.
President William Ruto’s government had managed to push the law through parliament despite strong opposition. The government argued that additional revenue measures were necessary to address the mounting debt burden and finance job-creating initiatives.
Justice Mugure Thande, who presided over the case, granted the suspension, stating, ‘I’m satisfied that the application meets the test for conservatory orders.’ The matter is scheduled to be revisited on July 5.
Under the finance act, the fuel tax was slated to be doubled to 16 percent, and a 1.5 percent housing levy for all employees was to be introduced.
The court’s decision to suspend the implementation of the finance law comes as a relief to many citizens who had voiced concerns about the potential impact of the increased taxes on their daily lives and overall economic stability.
