• Three-judge bench on Monday wil hear challenges to President William Ruto's Finance Act.
• Raising the VAT on fuel and the housing fund tax, especially backdating it, are key issues.
Image: FILE
The three-judge bench empaneled by Chief Justice Martha Koome will today start hearing the petition challenging the implementation of President William Ruto's new tax measures.
The hearing starts as human rights groups have moved to court to stop the government from backdating the new tax measures to July 1.
The Court of Appeal has since lifted High Court orders that suspended implementation of the Finance Act 2023, allowing the government to start collecting the levies.
Thus, the government has since backdated the remittance of the housing tax to July 1 and asked employers to remit the deductions when paying August salaries.
Seven human rights groups have filed a case under a certificate of urgency seeking to have the government stopped from backdating the taxes.
The groups are the Kenya Human Rights Commission, Katiba Institute, The Institute for Social Accountability, Transparency International Kenya, International Commission of Jurists, Siasa Place and Tribeless Youth.
All argue that backdating the taxes would have adverse effects on the health and livelihoods of Kenyans, if conservatory orders are not issued.
The petitioners have asked the court to suspend the particular sections of the Finance Act, especially those that introduce the housing tax and increase VAT on fuel products.
"The court be further pleased to suspend the decision to make the Finance Act retrospective effective to July 1, 2023 as opposed to the date of the Court of Appeal ruling lifting conservatory orders," they said.
They have listed the National Assembly and the Attorney General as the respondents and the Law Society of Kenya as an interested party.
Last week, LSK also moved to court challenging the constitutionality of the Finance Act, 2023.
The society asked the court to stop the government from implementing the new tax measures.
LSK, which filed the petition through lawyer Noel Ngoloma Okwach, claims the mandatory housing tax threatens the socio-economic interests of Kenyans.
"This court ought to safeguard the people’s right to life which is on the verge of being rendered meaningless since their opportunity to make a living is under threat by the impugned Sections 7, 33 (a) and 84 of the Finance Act," LSK says.
LSK says the heavy burden to be shouldered by the employers and employees in the enactment of the law will further lower the rate of employment.
High Court Judge Mugure Thande had in June suspended implementation of the Finance Act 2023 saying petitioners had cited several grounds on which they claimed that the new law is unconstitutional.
However, Court of Appeal judges Mohammed Warsame, Kathurima M’Inoti and Hellen Omondi lifted those orders, saying only specific sections of the act can be suspended.
On Monday, Judges David Majanja (presiding), Christine Meoli and Lawrence Mugambi will sit at the Milimani law courts in Nairobi to hear the matter.
In the case, Busia Senator Okiya Omtatah has challenged the legality of the Finance Act, arguing it did not pass through the Senate, yet it affects matters touching on counties like housing.
The petitioners will be asking the judges to suspend implementation of specific clauses including that which introduces the housing tax.