Kenya’s Court of Appeal declared the 2023 finance law unconstitutional on Wednesday, dealing a setback to President William Ruto’s administration.
The decision follows a series of violent protests against the government’s tax measures, including a VAT increase on fuel, a new housing tax, and higher personal income tax rates.
The court ruled that the finance law failed to meet constitutional requirements, rendering it invalid. This verdict builds on a previous High Court decision from late last year, which had struck out the housing levy but left other aspects of the law intact.
The government, which had introduced a new law to continue collecting the housing tax, is now facing additional legal challenges regarding this measure.
The finance ministry had not responded to the ruling, and Ruto’s office was unavailable for comment.
Ruto has recently appointed a new finance minister after dismissing most of his cabinet following the protests. The administration argues that increased taxes are crucial for funding development and addressing a significant public debt.
A new economic plan has been submitted to the IMF, with a decision expected by the end of August.
