In a historic move, the Finance Act 2023 was declared unconstitutional by a three-judge panel led by Justices David Majanja, Christine Meoli, and Lawrence Mugambi. Triggered by a petition from Busia Senator Okiya Omtatah, the challenge contended that the Finance Act lacked sufficient Senate approval, despite its classification as a legal money bill. The court, siding with the petitioners, invalidated the Housing Levy, citing an overreach of unconstitutional powers by the Kenya Revenue Authority.
This legal intervention not only halted the implementation of the Social Health Insurance Act until 2024 but also delivered a significant setback to Deputy President William Ruto. The court’s decision unfolded amidst the ongoing struggle between the Kenya Kwanza and Azimio factions in the National Dialogue Committee, which failed to find common ground on fuel tax and the removal of the Housing Levy.
Gachagua’s Reaction to the Suspension of the Housing Levy:
Deputy President Rigathi Gachagua has finally spoken out regarding the court’s decision to strike down the Housing Levy. Demonstrating deep respect for the judiciary, Gachagua appealed for judicial restraint, urging judges not to obstruct the removal of the Housing Levy and to permit President William Ruto to advance his policy agenda.
With the Finance Act facing legal turmoil, Gachagua’s plea highlights the political tensions surrounding the judiciary’s influence on economic policies.
The nation is on edge as it awaits the resolution of crucial financial legislation and anticipates the broader implications for the political landscape.
