Kenya court lifts block on tax hikes until final ruling

President William Ruto last month signed into law a finance bill expected to generate more than $2.1 billion for the government's depleted coffers, but the taxes threaten to pile more pressure on a population already struggling with high inflation.

The Nairobi high court had suspended implementation of the legislation after a senator filed a case challenging its constitutional legality."The order prohibiting the implementation of the Finance Act 2023... is hereby lifted pending the hearing and determination of the appeal," a three-judge bench ruled.

The decision comes after months of anti-government protests by opposition leader Raila Odinga in part over a cost-of-living crisis, with the demonstrations spiralling into looting and deadly clashes with police. The unrest has sparked alarm among Kenyans and the international community, which has urged the two sides to negotiate a political solution.

The Finance Act provides for new taxes or increases on basic goods such as fuel and food and mobile money transfers, as well as a controversial levy on all tax-payers to fund a housing scheme.Ignoring the earlier suspension orders, Kenya's energy regulator last month announced a hike in pump prices after the doubling of VAT to 16 percent as stipulated in the law.

Law Law Latest News, Law Law Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Kenya: Somalia Rejects Mediation Offer in Maritime Border Row With KenyaSomalia has stated that it will not accept mediation in a maritime dispute with Kenya, which was ruled by the International Court of Justice (ICJ) in October 2021, according to The East African.
Source: allafrica - 🏆 1. / 99 Read more »

Somalia Rejects Mediation Offer in Maritime Border Row With KenyaSomalia has reportedly stated that it will not accept mediation in an Indian Ocean maritime dispute with Kenya, which was ruled on by the International Court of Justice (ICJ) in October 2021. The court awarded Somalia the bulk of the territory, while adjusting the border slightly northward, to address Kenya's security and economic interests. The territory has vast oil and gas deposits and is also a source of livelihood for Kenyan fishermen. The matter was raised in the Somali parliament on July 22, 2023, after Kenya's President William Ruto reportedly urged Djibouti's President Omar Ismael Guelleh, to help broker a deal with Somalia. Somalia's Foreign Affairs Minister Ali Mohamed Omar, said that Somalia and Kenya were not currently engaged in negotiations on the territory.
Source: allafrica - 🏆 1. / 99 Read more »