A ruling by the High Court on Thursday, October 29, that nullified 24 laws passed by the National Assembly has effectively made tax collections by the Kenya Revenue Authority (KRA) for the past 2 years illegal.
Lady justice Jairus Ngaah, Anthony Ndungu and Teresiah Matheka faulted the laws passed by the Members of the National Assembly for not consulting their Senate counterparts.
However, the declaration of invalidity has been suspended for 9 months to enable the National Assembly rectify the problem.
This ruling also touched on the operations conducted by the KRA during their past financial years. Among the laws revoked was the Finance Act 2018, which details taxation measures of the government every year. The Act covered 2018/2019 year as well the 2019/20 year.
The authority collected Ksh1.58 Trillion in their 2018/19 financial year as revenues collected had grown by 11.3%. The revenue collected during their 2019/20 financial year, which amounted to Ksh1.61 trillion, reached a new record despite the Covid-19 pandemic affecting the economic sector.
Nandi Senator Samson Cherargey, who once chaired the Senate Justice Commission, stated that Kenyans have the right to demand for a tax refund which was collected illegally. He also threw jabs at the advisors to the President.
"The President's Legal advisors are an embarrassment and they should be fired for misleading the Head of State," he stated.
Makueni Senator Mutula Kilonzo Jnr also opined that the court's ruling had restored Senate's status. His Tharaka Nithi counterpart also commended the ruling hailing it as a breakthrough for devolution.
The government's operations were also deemed to be illegal by the court ruling since the Members of the National Assembly passed laws without the Senate's input. The judges ruled that the house defied Article 110 of the constitution which further stressed both houses consulting each other in matters affecting the counties.
"Before either House considers a Bill, the Speakers of the National Assembly and Senate shall jointly resolve any question as to whether it is a Bill concerning counties and, if it is, whether it is a special or an ordinary Bill.
"When any Bill concerning county government has been passed by one House of Parliament, the Speaker of that House shall refer it to the Speaker of the other House. If both Houses pass the Bill in the same form, the Speaker of the House in which the Bill originated shall, within seven days, refer the Bill to the President for assent, " reads part of the constitution.
The High Court judges stated that the role of the Senate in legislation was not optional and that the National Assembly had acted as the only House that made decisions affecting the country.
One of the laws that were also nullified is the KEMSA Act which prescribed for counties to purchase drugs and medical supplies from KEMSA alone. This meant that Counties are free to procure competitively as they await Parliament to realize the court judgement.
Other bills affected include the Computer Cyber Crime Act and Finance Act 2018, Public Trustee (Amendment) Act, Computer Misuse and Cybercrimes Act, the Statute Law (Miscellaneous Amendments) Act 2018 and the Building Surveyors Act 2018.
On its part, the National Assembly had argued that nullifying the Acts would be a huge loss on the State considering the costs involved. Other bills that have been affected by the nullification are National Youth Service Act, the Sports (Amendment) Act, National Cohesion (Amendment) Act, the Equalisation Fund Appropriation Act 2018 and the Sacco Societies (Amendments) 2018.
