By NATION AFRICA

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Kenya's Court of Appeal has overturned an order made last month suspending the implementation of the 2023 Finance Act after Treasury Cabinet Secretary (CS) Prof Njuguna Ndung'u argued that the government was losing half a billion shillings a day as a result of the freeze.

A three-judge bench of the Court of Appeal lifted the suspension placed on June 30, pending the determination of an appeal filed by Prof Ndung'u.

The CS moved to the Court of Appeal through Attorney General Justin Muturi, arguing that the government would lose about Ksh211 billion ($1.48 billion) in the current financial year.

Prof Ndung'u said the freeze will make it difficult for the Kenya Kwanza administration to implement the 2023/24 budget as planned and some projects will have to be suspended if the government is not allowed to raise revenue as proposed in the bill.

Read: Kenyans brace for tough July as Ruto signs tax bill into law

Justices Mohammed Warsame, Kathurima M'Inoti and Hellen Omondi ruled that the Finance Bill has a life of 90 days, after which the next budget cycle will be set in motion.

"We have no doubt that the Finance Act and the Appropriation Act are interdependent. While the former provides for the generation of resources, the latter provides for expenditure. There can be no expenditure where the mode of generation of funds has not been provided for," the judges said.

The judges said Prof Ndung'u had estimated that Ksh211 billion would be generated at an average daily rate of Ksh500 million ($3.51 million).

"Although the actual figures are disputed, it is certain that revenue was to be collected with the operationalisation of the Act," the judges said.

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