The High Court in Nakuru has certified as urgent a petition challenging the Finance Act 2025, citing claims that it contains discriminatory and unjust tax provisions.
Justice Samwel Mohochi directed that the matter be heard on Monday, July 14, to consider an application seeking temporary suspension of the Act’s implementation pending full determination.
The petition was filed by David Musyoka, who argues that the Act disproportionately shifts the tax burden onto the poor, violating constitutional principles of equity and fairness in public finance.
Through his lawyer Julius Miiri, Musyoka cited an amendment to Section 5(2)(a)(iii) of the Income Tax Act, which raises the daily tax-exempt per diem allowance for public servants from Ksh 2,000 to Ksh 10,000.
He claimed this amendment unfairly shields public officers from taxation while the broader population bears increasing fiscal pressure.
Musyoka also pointed to government spending data, noting that over Ksh 9.6 billion was spent on travel allowances in just six months to December 2024, with some senior officials receiving over Ksh 190,000 per day in per diem payments.
The petition further challenges the repeal of the 3% digital asset tax and its replacement with a 10% excise duty, arguing that this benefits high-net-worth individuals and corporate elites while burdening low-income earners.
Musyoka contends that the Act violates Article 210(3) of the Constitution, which prohibits laws that exempt public officials from taxation. He accused the government of ignoring widespread public opposition to provisions that reduce tax obligations for the wealthy while raising excise duties on essential goods.
The court will determine whether to grant conservatory orders halting implementation as the petition proceeds.
