National Assembly, Republic of Kenya & another v Matindi & 3 others (Civil Appeal (Application) E176 of 2023) [2023] KECA 1566 (KLR) (19 December 2023) (Ruling)
- Court
- Court of Appeal
- Case number
- 1566
- Citation
- [2023] KECA 1566 (KLR)
- Decided
- 19 December 2023
The Court of Appeal temporarily suspended the High Court's declarations for six months, pending the outcome of the appeal, recognizing the significant implications for public interest.
Facts
The National Assembly and the Speaker challenged a High Court ruling that declared Legal Notice No. 15 of 2021, which granted tax exemptions to Japanese entities, unconstitutional. The court also found Section 13(2) of the Income Tax Act unconstitutional, ruling that tax waivers must be enacted through Parliament.
Issues
- Whether the trial court erred in quashing section 13(2) of the Income Tax Act
- Whether the revocation of tax exemptions could be applied retroactively
- Whether an order declaring a statute or provision of statute as unconstitutional could be stayed
Reasoning
The court considered the implications of striking down the legislation and the need to avoid a legal vacuum, thus granting a stay of the declarations.
Outcome
The court granted an order temporarily suspending the coming into effect of the declarations made by the trial court with respect to Legal Notice No. 15 of 2021 and section 13 of the Income Tax Act for a period of six (6) months.
Orders
- Order temporarily suspending the coming into effect of the declarations made by the trial court with respect to Legal Notice No. 15 of 2021 and section 13 of the Income Tax Act for a period of six (6) months
Authorities cited
Legislation (2)
- Income Tax Act
- Legal Notice No. 15 of 2021
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