Supreme Court overturns ruling that declared the entire Finance Act 2023 unconstitutional

The Supreme Court has partially upheld a consolidated appeal challenging the constitutionality of the Finance Act, 2023.

The seven judges of the apex court, led by Chief Justice Martha Koome, declared several sections of the Act unconstitutional, emphasizing the need for adherence to legislative processes and public participation requirements.

This decision, following a lengthy legal battle over the government’s appeal regarding the Act’s legality, sets forth crucial recommendations aimed at enhancing transparency and accountability.

The Supreme Court delivered a landmark judgment on the controversial Finance Act, 2023, addressing the government’s appeal regarding its legality. While the court upheld parts of the law, it also emphasized the need for improved public participation in the legislative process, setting forth crucial recommendations aimed at enhancing transparency and accountability.

In the ruling, the Supreme court overruled the Court of Appeal’s declaration that the entire Finance Act, 2023, was unconstitutional. However, the seven judges of the apex court, led by Chief Justice Martha Koome, did uphold significant findings, declaring sections 76 and 78—related to the Kenya Roads Act—and section 87—concerning the Unclaimed Financial Assets Act—as unconstitutional.

The court’s decision highlights the importance of legislative compliance, particularly regarding the provisions of a money Bill. Notably, the court deemed the issue surrounding the Affordable Housing Levy debatable, thereby avoiding further controversy on that front.

The Supreme Court further urged parliament to establish a statutory framework for public participation and ensuring that every version of a bill remains accessible to the public throughout the legislative process. The court also stressed that reasonable measures must be in place for considering public input, reinforcing the necessity of transparency and accountability in lawmaking.