The government has pleaded with the Supreme Court to overturn a decision that nullified the entire Finance Act 2023, saying it has hurt service delivery.
Through lawyers, Prof Githu Muigai, Kiragu Kimani, Mahat Somane, and Paul Nyamodi, reiterated that the purpose of the government is to deliver services to its citizens, but in the absence of legislation, the same is inhibited.
Among them are default on debts for lack of adequate revenue, suspension of government projects, and inability to pay remunerated officers, including judges and members of independent commissions.
“Failure to raise adequate revenue by the government through taxation could potentially result in a default of government debts. This would have immediate negative harm on the sovereign debt rating for Kenya,” Githu said.
But in the event the judges find there were flaws with the challenged Finance Act and agree with the finding of the Court of Appeal that invalidated the entire Act, the government urged the court to consider crafting orders that will enable them to continue delivering services to the public.
Such orders would allow them to rectify any violations made in the next cycle of amendments to the act.
Kenya Export Floriculture, Horticulture, and Allied Workers Union also made a similar proposal.
Through advocate David Omula, the union said nullification of the act has resulted in significant adverse consequences.
“Everybody employed by the state is now agitating for a pay hike. We also have a shortage of medical staff and teachers and payment of debts that are eating up our revenues up to 70 per cent,” he said.
The Supreme Court began hearing the appeal filed by the CS and AG today. The session commenced at 9 am and ceased at 4 pm with parties scheduled to resume to court tomorrow for a further hearing.
The hearing comes after the Supreme Court temporarily suspended the Court of Appeal decision that invalidated the Act pending determination of the appeal.