The Government now says it is staring at a financial crisis after the High Court temporarily suspended the implementation of the Finance Act which would have facilitated the collection of taxes to fund the 3.6 trillion budget.
Githu Muigai who is representing Attorney General told the High Court that the government will soon be unable to pay international commitments as well as pay salaries of government employees.
He accused Busia Senator Okiya Omtata of misleading the court into believing there was no consequence in extending the suspension until the petition is determined.
However, Rarieda MP Otiende Amollo rebutted by stating that the government can still collect taxes through use of Finance Act 2022 which does not include contencious provisions such as the 16 per cent VAT on Fuel and Housing Levy.
More to follow….