Kenya's Court of Appeal has lifted the suspension placed on the government's new finance law, which provides for new taxes and increases on a number of basic commodities.
A three-judge bench of the court overturned the suspension of the 2023 Finance Act imposed on June 30, pending the determination of an appeal filed by Treasury Cabinet Secretary Njuguna Ndung'u who argued that the government was losing half a billion shillings a day because of the freeze.
"Public interest tilts in favor of setting aside the conservatory orders by the trial judge," the judges said in their ruling.
Earlier this month, Kenya's court rejected a request by the state to lift the suspension, which was imposed after Busia Senator Okiya Omtatah filed a case challenging its legitimacy. It was noted that the case raises major constitutional issues.
Under the Finance Act, the value added tax on fuel will increase from 8% to 16%, while workers and companies will have 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. According to President Ruto's administration, the tax increases are necessary to stabilize government finances as it faces a major budget crisis.
In late June, the president officially signed into law the Finance Bill, which is expected to raise over $2.1 billion for the government.
Following the move, however, the opposition called on Kenyans to take to the streets to protest the tax increases. The demonstrations were dubbed "Saba Saba" (Seven Seven) because they took place on the seventh day of the seventh month. In mid-June, Ruto issued a warning to the opposition that protests would no longer be allowed after violent clashes between protesters and security forces reportedly left at least 10 people dead.