The Court of Appeal has rejected the government's plea for interim orders to lift the suspension on the implementation of the Finance Act 2023, as ruled by the High Court. Instead, the Appellate judges, Justice Mohammed Warsame, Kathurima M'Inoti, and Hellen Omondi, have scheduled a ruling for July 28.

The government had sought to have the conservatory orders removed so that the Finance Act could take effect while an extended bench appointed by Chief Justice Martha Koome determines its legality.

On June 30, High Court Judge Mugure Thande halted Treasury Cabinet Secretary Njuguna Ndung'u and Attorney-General Justin Muturi from implementing the Act until a case filed by Busia Senator Okiya Omtatah is resolved.

In the Court of Appeal, former Attorney General Githu Muigai argued that the High Court handled the matter unprocedurally and engaged in judicial overreach during the ruling. He contended that the High Court violated the separation of powers between Parliament, the Judiciary, and the Executive by suspending the implementation of the Finance Act.

Lawyer Kiragu Kimani, also representing the State, warned that the government may seek to recover the taxes accrued between July 1, 2023 (the supposed effective date of the Act), and the date of the final verdict if Omtatah's petition is dismissed.

Omtatah had petitioned for the suspension of the Act, arguing that it contained amendments that infringed upon the Senate's mandate to protect county interests. He accused the National Assembly of passing the Finance Bill 2023 without consulting the Senate, which President William Ruto later signed into law.

The State, however, defended the National Assembly's actions, stating that the Act was constitutionally passed as a money bill, and therefore, the Senate's input was not required.

In response to the government's appeal, Omtatah accused the authorities of contempt, highlighting that they had already disregarded the suspension of the 16 per cent Value Added Tax (VAT) on petroleum products by raising fuel prices on June 30, 2023. This led to concerns that filing an appeal at the Court of Appeal could be seen as undermining the principles of justice.

On another note, Chief Justice Martha Koome appointed Justices David Majanja, Lawrence Mogambi, and Justice Christine Meori to hear and determine the legality of the Finance Act.

However, opposition groups, including the Kenya Conference of Catholic Bishops (KCCB) and activists, are calling on President Ruto to repeal the Act.