Kenya’s Supreme Court Reinstates 2023 Finance Law in Major Win for Ruto’s Government

NAIROBI – Kenya’s Supreme Court overturned an appeals court ruling on Tuesday that had previously nullified the 2023 finance law, providing a significant victory for President William Ruto’s administration. The decision allows the government to continue collecting taxes based on the 2023 legislation after this year’s finance bill was withdrawn amid nationwide protests.

The Court of Appeal had ruled the finance law unconstitutional in July, after Ruto’s government increased taxes, including doubling the value-added tax on fuel, introducing a housing levy, and raising the top income tax rate. These measures sparked widespread anger, leading to protests in June and July, resulting in more than 60 deaths. The unrest forced Ruto to withdraw the 2024 finance law shortly after it passed in the National Assembly.

The Supreme Court, however, dismissed the appeal court’s decision, stating, “We hereby set aside the Court of Appeals finding declaring the entire Finance Act 2023 unconstitutional.”

President Ruto has defended the tax hikes as essential for funding development programs and managing Kenya’s substantial public debt. This Supreme Court decision comes ahead of an IMF board meeting to approve a new funding tranche, as Kenya has fulfilled IMF-mandated targets within its loan program.