Consumer Federation of Kenya Petitions Court to Block Finance Bill 2026 Provisions

The Consumer Federation of Kenya (COFEK) has filed a petition at Milimani Law Courts seeking to suspend implementation of several proposed provisions in the Finance Bill 2026. The group argues the measures are unconstitutional and pose a threat to the rights of consumers, taxpayers and businesses.

In the petition filed through its Secretary General Stephen Mutoro, COFEK is seeking conservatory orders to stop the enactment and enforcement of the contested provisions. This would apply pending the hearing and determination of the case.

Court documents note that the legislative process is at an advanced stage. This creates an imminent risk that the contested provisions could be enacted before constitutional questions receive proper judicial consideration.

The federation contends that the proposed amendments raise serious issues touching on consumer protection, privacy rights, public participation, fair administrative action and equitable taxation. Several specific changes come under challenge.

Key provisions targeted include new tax obligations on digital payment systems and scrap metal transactions. Removal of certain VAT exemptions and zero-rated supplies also faces opposition. Introduction of virtual asset reporting requirements draws criticism as well.

Expansion of tax authorities' powers through anti-tax avoidance and assessment measures features among the concerns. COFEK claims some provisions cannot be implemented constitutionally and threaten immediate injury once enacted.

If passed, the measures would impose financial, regulatory and compliance burdens on consumers, businesses, investors and other stakeholders nationwide. The federation warns that violations involving public participation, privacy safeguards and international obligations may prove hard to remedy later.

COFEK has asked the court to issue conservatory orders preserving the subject matter of the petition. This would maintain the status quo while the constitutional questions undergo full hearing.

Finance bills typically undergo public participation before passage. This one follows the annual budget cycle. Enactment is expected before the new financial year begins in July.

The petition adds to previous legal challenges around tax policy. Earlier finance bills sparked similar court cases and public protests over potential cost increases for businesses and ordinary citizens.

The action arrives as parliament continues deliberations on the bill. Any court orders could affect the timeline and final content of the legislation.

Conservatory orders in such matters usually seek to prevent irreversible harm during litigation. The full outcome depends on hearings ahead.

Tax reforms impact nearly every sector of the economy. Digital payments now form the backbone of many transactions. Scrap metal trade supports numerous informal operators across the country.

The Consumer Federation of Kenya positions itself as a defender of ordinary Kenyans in these debates. Its latest move heightens scrutiny of the Finance Bill 2026. Government, lawmakers and industry groups will monitor developments closely.