The Law Society of Kenya (LSK) has swiftly moved to challenge the Finance Act 2023 in court, aiming to halt the enforcement of the proposed new taxes.

Through lawyer Noel Ngoloma Okwach, this legal action comes as LSK expresses concerns about the potential negative impact of the Act on the economic well-being of Kenyan citizens.

LSK’s legal petition requests a court order preventing the government from implementing Section 10(2)(3) of the amended Income Tax Act, as introduced by Section 7 of the Finance Act 2023.

“We are seeking the court to issue orders prohibiting the government from implementation, further enforcing section 10 (2) (3) of the Income Tax Act as amended by Section 7 of the Finance Act 2023,” read the court documents.

One of LSK’s key arguments is that the introduction of the mandatory affordable housing levy, as outlined in the Finance Act 2023, is detrimental to the socio-economic well-being of Kenyans. This move, they argue, contradicts the principle of social justice.

The burden imposed on employers and employees is another concern raised by LSK. They fear that this new legislation could exacerbate the already low employment rates in the country, directly opposing the constitutional principle of social justice.

Additionally, LSK asserts that the legislative process leading to the enactment of the Finance Act was marred by procedural and substantive irregularities.

The society alleges that the government ignored proper public participation procedures, resulting in the passage of an unjust, unsustainable, and potentially illegal piece of legislation.


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