Following the High Court's extension of the suspension of the Finance Act 2023 on Monday, July 10, experts have opined that President William Ruto faces a tall order in conducting government business.
Speaking to Kenyans.co.ke, Constitutional lawyer Bobby Mkangi argued that President Ruto could choose to implement the Finance Act 2023 to raise much-needed revenue to run his affairs and break the law in the process.
The head of state may also have to rely on the funds from his predecessor's regime to conduct his business. Alternatively, he could opt for a supplementary budget to ensure the uninterrupted delivery of services to the people.
"It's a tough game for them, I don't know how much they have in their reserves. They can turn to the supplementary budget until the matter is determined. It may be tough for them to run certain aspects.
"Yes, they will have to rely on the Finance Act 2022 in terms of the monies available from the act and put on hold certain processes until the ruling is delivered," Mkangi noted.
Apollo Mboya, an advocate of the High Court, echoed Mkangi's statements revealing that the government would rely on the provisions of the Finance Act 2022.
"The government will conduct its business the way it was before the implementation of the Finance Act 2023. This involves the current projects as well as the payment of salaries. The previous status quo remains until the matter is heard and determined," he explained.
On the other hand, lawyer Mboya argued that the focus should shift towards Busia Senator Okiya Omtatah's petition against Energy and Petroleum Regulatory Authority (EPRA) Managing Director Daniel Kiptoo over contempt of court.
This meant that Kenyans would continue to pay the increased fuel prices until the case is heard and determined.
"Nobody should give effect to the Finance Act 2023. We want to wait until Okiya Omtatah's case on contempt of court by EPRA is heard. After the ruling, we can determine which way to go but for now, no new measures, policies, or taxes from the Act should be implemented," he stated.
Alluding to whether the government would comply with the court directive and nullify the new taxes, lawyer Mkangi advised Kenyans to be wary of their payslips at the end of July 2023 and ensure that their funds are not deducted by their employers.
"We will know by the end of the month what the payslips will indicate. Employers cannot deduct the new taxes as it will be illegal," he stated.
Both lawyers agreed that Chief Justice Martha Koome would move expeditiously to constitute the judge bench for the hearing.
The proponents of the government criticised the court system - arguing that it was hindering Kenya Kwanza's manifesto. In a rejoinder, Azimio la Umoja coalition pointed out that the government's operations were yet to crash despite the suspension of the Finance Act 2023 for over 12 days.
“It is already 12 days since you suspended Finance Act 2023 and the government has not shut down. Our colleagues should stop scaremongering. The law provides for mechanisms of continuity through the Finance Act 2022. All that has stopped are the new taxes,” Rarieda MP Otiende Omollo stated.
