President William Ruto will on Friday know whether his tax proposals will be effected when the Court of Appeal renders its decision on the Finance Act, 2023.
Opposition Leader Raila Odinga has been leading an anti-government campaign against the Act which he says seeks to raid the pockets of poor Kenyans.
But Ruto has defended the law saying it is a radical plan he has deliberately initiated to get the country off the debt hole after years of massive borrowing.
The second top court in the land will rule on whether it will set aside an order suspending the implementation of the Act which triggered a wave of protests across the country.
The President is keen to have the orders lifted so that his government can continue to collect more taxes to finance the implementation of his ambitious plans.
At the moment, Ruto's public spending plans are in uncharted waters following the suspension of the Act.
The law spells out the government's revenue-raising measures that facilitate the collection of government taxes.
Treasury Cabinet Secretary Njuguna Ndungu had argued in court that the suspension of the Act is affecting government operations.
Ndungu had pleaded with the court on July 20 that there will be a budgetary crisis if the order is not lifted.
On July 18, Chief Justice Martha Koome appointed High Court judge David Majanja (presiding judge), Lady Justice Christine Meoli and Justice Lawrence Mugambi to hear and determine the case.
In the case, Busia Senator Okiya Omtatah and others moved to court to challenge the Finance Act 2023, saying that it was unconstitutional.
The Act raises VAT on petroleum products from 8% per cent to 16 per cent among a raft of other revenue-raising measures through taxes.
Despite the court suspending the Finance Act, the energy regulator, Epra, proceeded to increase fuel prices on July 1.
The Finance Act had proposed to double the VAT charged on fuel from 8 per cent to 16 per cent.
Raila and the church have asked President Ruto to repeal the law and allow for broad-based public participation to reduce the cost of living.
