Kenyan court voids controversial finance law that triggered protests

BREAKING NEWSAugust 1, 2024 at 11:32 AM UTC

TLDR

Kenya’s Court of Appeal declares government’s 2023 finance law unconstitutional, impacting President William Ruto's administration.
Finance bill withdrawal followed deadly protests; bills outline revenue measures like tax hikes and new levies.
Challenged 2023 bill proposed tax increases on fuel, housing, and personal income, sparking violent protests.

Kenya’s Court of Appeal declared the government’s 2023 finance law unconstitutional on Wednesday, dealing a significant blow to President William Ruto's administration. This follows the withdrawal of this year's finance bill after deadly protests.

Finance bills, presented to parliament at the start of every financial year, are the government's main tool for outlining revenue-raising measures, including tax hikes and the introduction of new levies.

The 2023 finance bill was challenged in court after a series of politically charged street protests turned violent. The bill proposed doubling the value-added tax on fuel, introducing a housing tax, and raising the top personal income tax rate, among other measures.

Key Takeaways

President Ruto, facing the most severe crisis of his nearly two-year presidency, is caught between the demands of lenders like the International Monetary Fund to reduce deficits and a population struggling with the soaring cost of living. The protest movement, which lacks official leaders and largely organizes via social media, has rejected Ruto's calls for dialogue—even after he abandoned his proposed tax increases and reshuffled his cabinet.

Kenya

Economy

Protests

Taxes

Government

East Africa

IMF