NAIROBI, Kenya — The Consumers Federation of Kenya (COFEK) has moved to the High Court seeking to halt the implementation of several contested provisions contained in the Finance Bill, 2026, arguing that they violate the Constitution and threaten the rights of consumers, taxpayers, and businesses.
In a petition filed at the Milimani Law Courts through its Secretary General, Stephen Mutoro, the consumer lobby is seeking conservatory orders to suspend the enactment and enforcement of the disputed measures pending the hearing and determination of the case.
COFEK contends that the Finance Bill is at an advanced stage in the legislative process, creating an imminent risk that the provisions could become law before constitutional questions raised by stakeholders are fully addressed 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 argues that the proposed amendments raise significant constitutional concerns touching on consumer protection, privacy rights, public participation, fair administrative action, and equitable taxation.
Among the provisions being challenged are proposed tax obligations on digital payment systems and scrap metal transactions, the removal of certain Value Added Tax (VAT) exemptions and zero-rated supplies, new virtual asset reporting requirements, and expanded powers for tax authorities under proposed anti-tax avoidance and tax assessment measures.
According to COFEK, some of the provisions could impose immediate financial and regulatory burdens on consumers, businesses, and investors if enacted without adequate safeguards.
“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 federation argues in its court filings.
The petition also raises concerns about the adequacy of public participation in the legislative process, a constitutional requirement under Articles 10 and 118 of the Constitution of Kenya, which obligate public institutions and Parliament to facilitate meaningful citizen involvement in law-making.
COFEK maintains that some of the alleged violations, particularly those relating to privacy protections and constitutional governance, may not be easily remedied once the law comes into force. It is therefore asking the court to intervene before Parliament concludes consideration of the Bill.
The case adds to growing scrutiny surrounding the Finance Bill, 2026, which contains a raft of tax and revenue measures aimed at supporting government financing needs amid mounting fiscal pressures.
While the government has defended the proposed reforms as necessary to strengthen revenue collection and enhance tax compliance, critics argue that some provisions could increase the cost of living and place additional compliance burdens on businesses.
The High Court is expected to consider the application for conservatory orders as COFEK seeks to preserve the status quo while the constitutional questions raised in the petition are determined. The matter remains pending before the court.
