Kenya’s Supreme Court upholds controversial tax hike law

A top court in Kenya on Tuesday overturned a landmark lower court ruling, declaring the contentious Finance Act 2023 constitutional, effectively upholding legislation that has sparked nationwide protests over impending tax hikes.

The Court of Appeal had previously declared the act unconstitutional, citing flaws in the public participation process leading to its enactment.

However, the Supreme Court, in its verdict, disagreed with this assessment, stating that the public had been adequately consulted and their views considered during the legislative process.

"We find that public interest tilts in favor of granting conservatory and stay orders to preserve the substratum of the consolidated appeal and maintain stability in the budget and appropriation process pending the determination of this appeal," the Supreme Court ruled.

"In addition, in view of the public interest in the matter, we direct that the consolidated appeal herein be set down for hearing within the shortest time possible after the delivery of this ruling."

The decision has sparked mixed reactions, with the government welcoming it as a victory for its fiscal policies, while many Kenyans remain concerned. Opposition leaders and civil society groups have expressed deep disappointment and concern.

Critics argue that the law places an undue burden on ordinary Kenyans, especially in light of the already high cost of living and economic hardships.

The ruling is also expected to reignite public debate and potentially trigger renewed protests.

According to the Supreme Court, the consolidated appeals shall be set for hearing virtually on Sept. 10 and 11.