mzeiya
Elder Lister
A three-judge bench on Tuesday ruled that some sections of the Finance Act were unconstitutional including the Housing Levy.
The ruling was delivered by Justices David Majanja, Christine Meoli and Lawrence Mugambi.
In the ruling, President William Ruto's administration was ordered to cease collection of Housing Levy as it contravened the Constitution.
"The levy against persons in formal employment to the exclusion of other non-formal income earners without justification is discriminatory, irrational, arbitrary and against the constitution," Justice David Majanja ruled.
This was after Busia Senator Okiya Omtatah, the Law Society of Kenya and others moved to court challenging the Finance Act, saying that it was unconstitutional.
Justice Mugambi ruled that budget estimates were legally presented noting that the Finance Bill was a money bill within Article 114 of the Constitution and was legally presented.
"In view of the foregoing, we are satisfied that, applying the peel and substance test, the Finance Bill 2023 is a money bill; however, it contains matters that are extraneous to a money bill and are unconstitutional," the Court ruled.
While the High Court was satisfied that the public participation process conducted by the National Assembly was sufficient it faulted the Parliamentary Committee for not giving reasons for denying proposals made by Kenyans.
Ruto's administration received a reprieve after the High Court ruled that requiring betting firms and alcohol manufacturers to submit excise duty within 24 hours was an administrative issue and as such declined to intervene.