Senator Okiya Omtatah and six others have launched a legal challenge against the Finance Act, asserting that it is illegal and should be invalidated. In response, the Kenya Revenue Authority (KRA) has warned that if the court does not set aside the orders suspending the Finance Act 2023, the public will suffer.
KRA, represented by their lawyer, argues that the petitioners’ motive in filing the case is to deliberately undermine revenue collection, ultimately affecting vulnerable Kenyans. The petitioners, led by Senator Omtatah, contend that the Finance Act is unlawful and should be quashed.
During the proceedings, lawyer Githu Muigai, representing the CS Treasury and Planning, informed Justice Mugure Thande that the orders issued last Friday would lead to a budgetary crisis in the country. Muigai further explained that the orders effectively prohibit the government from spending any funds, including salaries for individuals such as Omtatah who serve in the Senate. He argued that the suspension of the Finance Act has a wide-reaching impact on the entire budget.
Contrary to the state’s arguments, Lawyer Otiende Omollo, representing one of the petitioners, refuted the notion that the Finance Act prevents the government from collecting taxes. Omollo stated in court that the Finance Act remains in effect and that the order does not impede the payment of bills and salaries, as claimed by the government.
Additionally, Omtatah and Omollo alleged that the Treasury and the Energy and Petroleum Regulatory Authority (EPRA) have disobeyed the court order and proceeded to implement certain provisions within the Finance Act.
The case is set to resume in the afternoon for parties to present their submissions on the potential extension of the orders issued on Friday. Justice Thande had previously issued orders to suspend the Finance Act pending the hearing and determination of the lawsuit.
The ongoing legal battle raises significant concerns about the implications of the Finance Act’s suspension and its potential effects on the government’s ability to collect revenue and meet its financial obligations. The outcome of the case will have far-reaching consequences for the country’s budgetary planning and fiscal management.
by: DrArogo