High Court to hear petition seeking to halt implementation of 2025 Finance Act
The Nakuru High Court is expected to hear an application by a petitioner seeking a conservatory order suspending the implementation, operationalisation of the Finance Act, 2025, or some specific provisions impugned in his petition.
The petitioner, David Musyoka, wants the court to bar the collection or enforcement of payment of any tax levy or duty introduced under the provisions of the Finance Act, 2025.
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Musyoka is seeking temporary orders restraining the National Assembly and the Attorney General, who are listed as respondents, from implementing the Act, pending the hearing and determination of the petition.
He asserts that the 2025 Finance Act, imposes additional taxes on Kenyans while at the same time cushions a select category of public officers from paying taxes on their hefty allowances and repealing and replacing the digital asset tax with a 10% excise duty, which reduces the tax burden on high-net-worth individuals, corporate entities, and political elites with access to complex digital financial instruments.
“The amendments to the Finance Act are highly discriminatory and punitive to the vast populace and it is thus in the interest of justice that this honourable Court intervenes by granting the orders sought,” Musyoka states in his petition.
Notably, Musyoka says that there is a need to curb any unsustainable spending by imposing higher taxation on the allowances of public officials, noting the government spent over Ksh9.6 billion on both domestic and international travel in the last six months of 2024.
He reveals that a report by the Controller of Budget and the Salaries and Remuneration Commission (SRC) shows that senior government officials can receive per diem payments exceeding Ksh190,000 per day for international travel.
“In just six months to December 2024, the government spent over Ksh9.9 billion on domestic and foreign travel expenditure, primarily driven by per diem allowances. The state of affairs would ordinarily call for curbing unsustainable spending,” part of the application read.
He notes that the amendments to the income tax grant tax waivers to narrow segments of the population, while the vast majority of ordinary Kenyans continue to bear the brunt of regressive consumption taxes such as VAT and excise duties on essential goods.
On Thursday, July 10, 2025, Justice Mohochi Samwel Mukira directed the petitioner to serve the respondents (National Assembly and AG) with the application, and file and serve his skeletal submissions by Monday, July 14, 2025, 9 AM.
He also directed the National Assembly and AG to file responses and skeletal submissions by Monday, July 14, 2025, at 2:00 pm.
The Court will hear the application for the conservatory order today, Monday, July 14, 2025, at 3:30 pm.
