- Treasury CS Njuguna Ndungu had said the suspension of the Act is affecting government operations.
- Ndungu pleaded with the court saying there will be a budgetary crisis if the order is not lifted.
Image: KURIA KIMANI / TWITTER
There was a mixed reaction after the Court of Appeal set aside an order suspending the implementation of the Finance Act, 2023.
Finance Committee chairman Kuria Kimani said that services which were halted will now be provided to Kenyans.
Kimani who has been at the forefront in pushing for the Finance Act said that he is happy the order had been lifted.
"The Finance Act will now be operational thanks to the Court of Appeal ruling. This means that the manufacturing of fertiliser will now be zero-rated. The excise duty on electric motorcycles is now removed. Rental income tax reduced from 10 to 7.5 per cent," he said.
"Maize, wheat and cassava flour are now zero-rated. Reduction on excise duty money transfer, airtime and internet. Zero rating of parts used for the assembling of mobile phones will make Kenya the lead manufacturer of smartphones in Africa. I am elated."
Justice Mohamed Warsame, Kathurima M'Inoti and Hello Omondi on Friday ruled that they were persuaded that the applicants have satisfied the principles for the grant of the orders sought, and that, public interest tilts in favour of setting aside the conservatory orders by the trial Judge.
"The upshot of our decision is that the application has merit and the same is allowed as prayed with the effect that the order made on July 10, 2023, suspending the Finance Act 2023, and the order prohibiting the implementation of the Finance Act 2023, be and is hereby lifted pending the hearing and determination of the appeal," the judges ruled.
Treasury CS Njuguna Ndungu had said the suspension of the Act is affecting government operations.
Ndungu pleaded with the court saying there will be a budgetary crisis if the order is not lifted.