In a significant development, the Supreme Court of Kenya has granted the government temporary relief by suspending the Court of Appeal's decision that nullified the Finance Act 2023.

The decision comes after the government filed an emergency application seeking to stay the implementation of the Court of Appeal's ruling, which had declared the Finance Act unconstitutional.

The Supreme Court's conservatory orders, issued on Tuesday, effectively maintain the status quo of the Finance Act until the Court of Appeal's judgment is reviewed and determined by the apex court.

This temporary measure provides the government with breathing room to address the legal challenges and potential economic disruptions that could arise from the immediate implementation of the Court of Appeal's decision.

The Court of Appeal had ruled that the Finance Act violated several provisions of the Kenyan Constitution, including those related to public participation and the budget-making process.

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The court's decision raised concerns about the legality of tax increases and other measures introduced in the Finance Act, potentially impacting the government's revenue collection and economic policies.

The Supreme Court's intervention now sets the stage for a legal battle between the government and the petitioners who had challenged the Finance Act.

The court has scheduled hearings for the consolidated appeals on September 10th and 11th, 2024, to address the constitutional issues raised in the case.

The outcome of the Supreme Court's decision will have far-reaching implications for the Kenyan government's fiscal policies and the overall economic landscape.

Suppose the Supreme Court upholds the Court of Appeal's ruling. In that case, the government may be forced to reconsider its revenue-raising measures and potentially implement alternative strategies to meet its budgetary needs.

As the legal proceedings unfold, the nation will be closely watching to see how the Supreme Court addresses the complex constitutional questions at stake and what impact its decision will have on the government's ability to implement its economic agenda.