News Flash 4 November 2024 – Kenya – Finance Act 2023 Update

CRS News flash

NOVEMBER 2024 – KENYA
FINANCE ACT 2023 UPDATE
It is important that employers note the following:

Supreme court declares Finance Act 2023 constitutional
On 29 October 2024 the Supreme Court of Kenya issued a ruling in a combined appeal concerning the validity of the Finance Act, 2023. The Court of Appeal’s ruling that the entire Act was invalid was overturned after the judgement considered several concerns pertaining to the legislative process and particular Act clauses. Our CRS News Flash of 12 August 2024 contains more information.

After being ratified on 26 June 2023, the Act was the subject of many constitutional challenges before the High Court (HC). Among other things, the petitioners contended before the HC that the Act needed Senate approval and that the public was not sufficiently involved in its passage. After hearing arguments from both parties, the HC issued its ruling on 28 November 2023, holding that some of the Act’s provisions were unconstitutional, but upholding the others.

After taking power in September 2022, President William Ruto’s administration attempted to enact a fresh round of tax increases this year, which infuriated many citizens and led to violent riots in June and July that claimed over 60 lives.

Shortly after the national legislature ratified this year’s version of the financial law, Ruto was obliged to revoke it due to the disturbance, which also caused a delay in the approval of a fresh funding tranche from the International Monetary Fund.

Ruto has maintained that the tax hikes are required to assist payment of a significant amount of public debt and support development initiatives in Kenya, the largest economy in East Africa.

Share the Post:

More News and Insights

Scroll to Top

Book your CRS solutions demo or consultation


By submitting this form, you agree to our terms and conditions

Software products

Simplify payroll and HR management with our comprehensive solution suite.

HR software

Reshape the employer-employee dynamic.

Payroll software

Enhance accuracy and efficiency.

Performance management software

Nurture employee development.

Integration & Security

Connect with leading ERP platforms.

Global footprint

We’re active in 35 countries.

Our services

Grow your business while we take care of your human capital.

HR outsourcing

Transform HR into a strategic asset.

Payroll outsourcing

Simplify your payroll operations.

EOR & PEO

Expand your global reach.

Support channels

We keep your payroll and HR infrastructure running smoothly.

Service desk & FAQ

Round-the-clock expert support paired with essential payroll and HR information.

HIPE4 Agreement

Global payroll and HR excellence defined.

Download resources

Leverage expert insights that steer your strategic decision-making.

Downloads

Essential resources to improve your business practices.

News & Insights

Comprehensive coverage of key payroll and HR issues.

Company overview

CRS has been pioneering payroll and HR solutions for global organisations for over 40 years.

About us

Our custom payroll and HR solutions benefit employers and employees in more than 35 countries.

Work with us

Experience an environment where creativity, collaboration and empowerment thrive.