This archive report was first published on 3 December 2019.
Okiya Omtata Challenges Finance Bill 2019 in Court ¶
Human rights activist Okiya Omtata has petitioned the court to suspend the Finance Bill 2019, terming it unconstitutional. He argues that the bill was passed in parliament without the required quorum, and the Speaker deliberately pushed it through for assent.
According to Omtata, the bill was taken to the President for signing despite the fact that parliament did not raise the required quorum of 233 majority MPs. Only 161 legislators were present, making the bill invalid.
Omtata wants the court to issue temporary orders to suspend the bill before determination of the case to prevent his petition from being overtaken by events.
The Finance Bill 2019 had been passed in Parliament and taken to the President for assent, but the head of state returned it to the house prescribing clause 45 to be deleted. The section was related to the capping of interests charged on loans by lenders.
President Uhuru Kenyatta had recommended the deletion of the clause, citing that the rate which had been capped by Central Bank of Kenya (CBK) was hurting the economy. CBK Governor Patrick Njoroge later echoed these sentiments, stating that the interest rate cap had affected the economy and led to a loss of business.
However, Omtata believes that the Speaker was wrong in passing the bill to the President since the absence of a quorum in the house meant the bill had died.
He wants the court to declare the Finance Act 2019 as unconstitutional and therefore invalid, null and void ab initio because it was enacted in violation of a High Court decision.
On November 25, CBK revised the benchmark rate to 8.50% to 9%, a move that is expected to see banks review their interest rates downwards.
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