Gov’t to Appeal Court Decision Stopping Imposition of Increased Taxes on Kenyans

The government is set launch an appeal against a decision by the High Court stopping the implementation of new taxes on Kenyans contained in Finance Bill 2018.

National Treasury Cabinet Secretary Henry Rotich said the government through the office of the Attorney-General will file an appeal this week against the decision.

On Thursday, High Court Justice Wilfrida Okwany issued conservatory orders suspending the implementation of the new taxes after activist Okiya Omtata’s petition against the taxes citing breach of the constitution.

The Finance Bill 2018 proposed a range of new taxes aimed at boosting tax collection in the wake of a widening budget deficit. Among the proposals in the Bill is introduction of excise duty that requires Kenyans to pay 0.05 per cent on any bank transaction of more than Sh500,000.

The Bill, which came into effect on July 1st, further increased charges on mobile cash transactions from the current 10 per cent to 12 per cent.

However, Judge Okwany issued conservatory order stopping its enactment until a case opposing the law is heard and determined.

CS Rotich argues that the suspension of the new law is likely to negatively affect the operations of the government since it touches on taxes.