Raila Odinga, the former Prime Minister, took legal action against President William Ruto on Tuesday, July 4, over the Finance Act 2023, claiming it imposes an undue burden on taxpayers.
The lawsuit filed at the High Court in Nairobi is the latest salvo in a push by the opposition to force President Ruto to give in to its demand.
Through his Lawyer Paul Mwangi, Raila and his Azimio la Umoja Coalition also claimed that the Law illegally increased taxes on essential goods and services, such as food, fuel, and electricity, violating consumers’ basic rights.
“The Petitioner asserts section 84 of the Finance Act No 4, 2023, which amends the Employment Act, 2007, by inserting a new section immediately after section 31A that an employer shall pay an Affordable Housing Levy is unconstitutional so far as the National government seeks to implement and develop matters housing.
PCS
“The Petitioner states that the Constitution in the fourth schedule on the distribution of functions between the national government and the county governments, part 1, No. 20 provides that the National Government is to come up with the housing policy while part 2, No. 8 (d) of the same schedule, provides that the county government is the one responsible for the provision of housing hence section 84 of the Finance Act, 2023 is unconstitutional as the National Government has no mandate to provide housing,” read part of the petition by Azimio la Umoja.
The Azimio la Umoja Leader also claimed that President Ruto had used the Law to usurp powers that belong to Governors and County Governments. As a result, he called on the High Court to protect devolution by quashing the specific contested provision of the Finance Act 2023.
“The Petitioner further states section 2 of the Finance Act No 4 of 2023, is unconstitutional in so far as the National Government imposes a tax on entertainment, which is a function of the county government,” the petition read in parts.
Raila is seeking a court order to declare sections of the Finance Act 2023 unconstitutional and to have them nullified, including compelling the government to pay the cost of petition and litigation.
Azimio Prayers
1. A declaration that The Finance Act, 2023 was promulgated unconstitutionally as it involved and concerned county government functions and the Speaker of the National Assembly should have referred it to the Speaker of the Senate as stipulated in Article 110 (4) of the Constitution.
2. A declaration that section 84 of the Finance Act, 2023, that an employer shall collect and pay to the National Housing Development Fund is unconstitutional as it authorizes the National Government to raise tax and undertake a function in contravention of the fourth schedule, Part 1, Paragraph 20 of the Constitution which provides that the National Government is only to propose the housing policy and Part 2, Paragraph 8 (d) that provides that the county government is the one responsible for the provision of housing.
3. A declaration that section 2 of the Finance Act 2023 is unconstitutional to the extent that the National Government imposes a tax on entertainment, contrary to Article 209 of the constitution of Kenya, which provides that only the county government may impose taxes on entertainment.
4. A declaration that section 33 of the Finance Act 2023, which imposes Value Added Tax on insurance compensation, is unconstitutional as it contravenes Article 40 of the Constitution.
5. An order awarding costs of the Petition to the Petitioner.
6. Any other appropriate relief the court may deem just to grant.
Raila Ruto Raila Ruto
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