2024-08-02 02:55:02
After withdrawing the 2024-2025 alternative budget at the end of May after a strong protest in the country, the Court of Appeal annulled on Thursday July 31, 2024 the law of the public budget of 2023. A law issued in June 2023 which the President to finance the budget. Very controversial for the various taxes, it had already led at that time to demonstrations and was the subject of legal action.
Published on: 02/08/2024 – 04:55
2 minutes
With our correspondent in Nairobi, Alban Thirouard
The three judges of the Court of Appeal listed the irregularities in the parliamentary procedures and found that the law was “ Essentially flawed and therefore unconstitutional ».
For President Ruto, this is a new blow, after he had to withdraw the highly contested 2024 finance law. For the time being, he read in particular on the measures introduced by the 2023 law to finance the expenses of his administration.
It was announced in 2023 in order, according to him, to reduce the burden of the public debt of the country. A debt is estimated at 71 billion euros, which represents around 70% of Kenya’s GDP. To increase the revenue for the moneyed state, the 2023 law increases or introduces new taxes, on the price of fuel or on higher salaries for example. With the judgment of the Court of Appeal, these measures are no longer valid.
William Ruto already announced budget cuts last month. Others will be important now, suggests economist Michael Chege. Who cares: this court decision could, according to him, undermine the IMF’s support for Kenya. The finance ministry must approve the new tranche of aid for the country by the end of the month.
The government may also decide to appeal the court’s decision to the Supreme Court.
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