The government suffered a major blow on Wednesday after high court in Nairobi ruled that Treasury CS Henry Rotich did not follow the right procedure when he presented the Finance Bill, 2018.
Justice Wilfrida Okwany noted that there was no public participation on the bill before it was implemented.
“The finance bill including taxation cannot be implemented before going through Parliament ” the judge held.
Okwany also said the Provisional Collection of Taxes and Duties 2018 is unconstitutional.
Activist Okiya Omtatah had sought sued the state.
The controversial Finance Bill 2018 is the mother of Uhuru’s proposed 8% VAT on fuel. Parliament was set to debate the bill on Thursday during a special sitting.
President Uhuru and supreme leader Raila Odinga have urged members of parliament to adopt the president memorandum.
Treasury CS Henry Rotich has also proposed a raft of budget cuts geared towards a balanced budget in order to close the gap/deficit.
More to follow.