Kenya's court has rejected a request by the state to lift the suspension of a new finance law, which provides for new taxes or increases on a number of basic commodities.
In the ruling on Monday, Justice Mugure Thande decided not to allow the implementation of the Finance Bill after Busia Senator Okiya Omtatah filed a case challenging its legitimacy. According to local media reports, the judge agreed that the case raises major constitutional issues, noting that the act will overburden Kenyans.
In June, the National Assembly ratified the bill, which proposes new or increased taxes on a range of basic goods, including fuel, food and mobile money transfers.
The bill was supported by 184 MPs, mostly from the ruling Kenya Kwanza party, while 88 MPs, mostly from the opposition Azimio Party, opposed the amendments.
It particular, the Finance Bill provides for the increase of the VAT (Value Added Tax) on fuel from 8% to 16%. It also requires companies and workers to pay 1.5 % of their gross salaries into a housing levy, which will go into a fund to finance the development of low-income housing. The president has strongly supported this provision.
Later, the president officially signed into law the Finance Bill, which is expected to generate more than $2.1 billion for the government as it suffers a substantial budgetary crisis.
Following the move, the opposition urged Kenyans to take to the streets to oppose the tax hikes. The protests were dubbed "Saba Saba" (Seven Seven) as they took place on the seventh day of the seventh month; they claimed lives of at least three people.