NAIROBI, Kenya, June 16 – Consumer Federation of Kenya (COFEK) has moved to the Milimani Law Courts seeking to halt the implementation of several contested provisions contained in the proposed Finance Bill 2026, arguing that they are unconstitutional and harmful to consumers, taxpayers and businesses.
In a petition filed through its Secretary General Stephen Mutoro, the consumer lobby is seeking conservatory orders to stop the enactment and enforcement of the disputed provisions pending the hearing and determination of the case.
According to court filings, COFEK argues that the legislative process is already at an advanced stage, creating a real possibility that the contested clauses could become law before the constitutional issues raised are determined by the court.
“The impugned legislative process is active, ongoing and approaching the final stages of parliamentary consideration, thereby creating an imminent risk that the impugned provisions may be enacted into law before the constitutional questions raised herein are considered by this Honourable Court,” the petition states.
The federation contends that the proposed amendments raise serious constitutional concerns, including alleged violations of consumer protection rights, privacy rights, public participation requirements, fair administrative action and principles of equitable taxation.
Among the provisions being challenged are proposals introducing new tax obligations on digital payment systems and scrap metal transactions, removal of selected VAT exemptions and zero-rated supplies, introduction of virtual asset reporting requirements, and expanded powers for tax authorities through anti-tax avoidance and tax assessment measures.
COFEK further argues that some of the provisions are incapable of constitutional implementation and would result in immediate constitutional harm once enacted.
“Further, certain of the impugned provisions are, on their face, incapable of constitutional implementation and threaten immediate constitutional injury the moment they are enacted and brought into operation,” the court documents state.
The lobby group warns that the proposed measures could impose significant financial, regulatory and compliance burdens on consumers, businesses, investors and other stakeholders across the country.
It also argues that some of the alleged constitutional violations — including concerns surrounding public participation, privacy safeguards and Kenya’s international obligations — may not be adequately remedied once the law takes effect.
COFEK is now asking the court to issue conservatory orders preserving the subject matter of the petition while the constitutional questions raised are heard and determined.
