The Consumer Federation of Kenya (COFEK) has moved to the High Court at Milimani seeking to halt the implementation of several proposed provisions contained in the Finance Bill, 2026, arguing that they are unconstitutional and pose a threat to consumers, taxpayers and businesses.
In a petition filed through its Secretary General Stephen Mutoro, COFEK is asking the court to issue conservatory orders stopping the enactment and enforcement of the contested provisions pending the hearing and determination of the case.
According to court documents, the federation argues that the legislative process is at an advanced stage and that there is an imminent risk that the impugned provisions could be enacted into law before the constitutional issues raised in the petition are determined by the court.
COFEK contends that the proposed amendments raise serious constitutional concerns touching on consumer protection, privacy rights, public participation, fair administrative action and equitable taxation.
Among the provisions being challenged are those introducing new tax obligations on digital payment systems and scrap metal transactions, removing certain VAT exemptions and zero-rated supplies, imposing virtual asset reporting requirements, and expanding the powers of tax authorities through proposed anti-tax avoidance and tax assessment measures.
The federation argues that some of the proposed provisions are incapable of constitutional implementation and would cause immediate constitutional injury once enacted and brought into operation.
COFEK further claims that if the Finance Bill is passed in its current form, consumers, businesses, investors and other stakeholders will be subjected to immediate financial, regulatory and compliance burdens.
It also argues that some of the alleged violations, including concerns relating to public participation, privacy safeguards and Kenya’s international obligations, may not be capable of effective remedy once the law comes into force.
The federation is therefore urging the court to preserve the subject matter of the petition by issuing conservatory orders pending the determination of the constitutional questions raised in the case.
