Court of Appeal Rules on Constitutionality of Finance Act, 2023
In a landmark decision, the Court of Appeal has ruled on the constitutionality of the Finance Act, 2023, highlighting significant issues with the legislative process leading to its enactment. The ruling comes as a major victory for those advocating for transparency and public participation in the legislative process.
The court addressed multiple concerns raised by the petitioners at the High Court. Notably, it found that several provisions of the Finance Act, including sections 76, 78, and 87, which amended the Kenya Roads Act and the Unclaimed Financial Assets Act, were unconstitutional. These sections, the court ruled, did not belong in a money bill and were thus improperly included.
The decision also emphasized the necessity of adequate public participation in the legislative process. The court found that the 18 amendments made to the Finance Act after initial public consultations violated the principle of public participation. The lack of sufficient explanation from Parliament about these changes rendered the public engagement process ineffective and the legislative process flawed.
Furthermore, the court scrutinized the Appropriations Act, 2023, and declared it unconstitutional. The Act was found to have exempted required revenue estimates, breaching principles outlined in the Public Finance Management Act and constitutional mandates regarding public finance.
Faith Odhiambo, President of the Law Society of Kenya, commented on the decision, underscoring its significance. “The Court of Appeal’s ruling reaffirms the critical importance of constitutional compliance and fair legislative processes. The judgment reinforces the need for transparency and proper public participation in tax legislation,” Odhiambo stated.
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