The Law Society of Kenya has moved to court to challenge the constitutionality of the Finance Act 2023 and wants the government stopped from implementing it. The lawyer’s association has also stated that the new taxes will hit Kenyan employers hard amid rising unemployment.
In a certificate filed under urgency, the society through lawyer Noel Ngoloma Okwach claims that the mandatory affordable housing levy threatens the social economic interest of Kenyans
“We are seeking the court to issue orders prohibiting the government from implementation, further enforcing section 10 (2) (3) of the Income Tax Act as amended by Section 7 of the Finance Act 2023,” read the court documents.
“This Court ought to safeguard the people’s right to life which is on the verge of being rendered meaningless since their opportunity to make a living is under threat by the impugned Section 7, 33 (a)and 84 of the Finance Act,” LSK says.
“There exists no rationale whatsoever as to why the government through the National Assembly would force its citizens to contribute to a mandatory scheme in a country where a majority of its citizens are already grappling with harsh economic times due to the existence of multiple layers of taxes,” the society argues.
Groups including the opposition have argued that there are better ways to fund the Ksh3.6 trillion budget. The opposition among other things has asked Ruto to consider restructuring some debt instead of hiking the taxes.
Ruto has ruled out a debt restructuring and instead hiked taxes including collecting more from the top earners and increasing excise duty on imported furniture, airtime, and money transfer.
By Abigael Chemok