In what appears to be a blow to president Ruto’s government, the Court of Appeal in Nairobi has declared the Finance Act, 2023, unconstitutional.
The court found that the Finance Act, 2023, contravened Articles 220(1)(a) and 221 of the Kenyan Constitution, as well as sections 37, 39A, and 40 of the Public Finance Management Act (PFMA), which outline the budget-making process.
According to the Court, the enactment process of the Finance Act, 2023, was fundamentally flawed and violated the constitutional.
It is the Court’s finding that ruled that the failure to comply with these constitutional and statutory requirements rendered the entire 2023 Finance Act unconstitutional and void.
One of the critical points of contention was the lack of adequate public participation in the legislative process.
The court emphasised that Parliament is obligated to provide reasons for adopting or rejecting proposals received from the public during the public participation process.
“A declaration is hereby issued that the failure to comply with this constitutional dictate renders the entire Finance Act, 2023, unconstitutional.” ruled the Judges.
Further, the court upheld the High Court’s finding that specific sections of the Finance Act, 2023—particularly those amending the Kenya Roads Act, 1999—were unconstitutional, null, and void.
This decision affirms that both houses of Parliament must concur in such legislative actions, which was not observed in the case.
