Kenya: Supreme Court Limits Senate Role in Passage of Financial Legislation

What the report says

Kenya’s Supreme Court has ruled that the National Assembly may pass money Bills without the Senate, narrowing the upper house’s role in legislation on taxation, appropriations and public spending. The decision, reported by Capital FM and distributed by AllAfrica, was delivered in Nairobi and settles a long-running constitutional dispute over how Parliament handles financial laws and county-related matters.

According to the ruling, money Bills fall outside the Senate’s legislative mandate. The court said the Constitution bars the Senate from introducing or considering such Bills, while also affirming that laws affecting county government functions must still follow the process that involves both chambers. That distinction is central to the dispute because the Senate has often argued for a role in legislation with implications for devolved government.

The judgment has immediate consequences for several laws passed by the National Assembly, including the Finance Act 2018, the Tax Laws (Amendment) Act 2018 and a number of Appropriations Acts, which the court effectively upheld. At the same time, it found constitutional problems with the exclusion of the Senate in the Equalization Fund Appropriation Act 2018, the Sacco Societies (Amendment) Act 2018 and amendments to the Kenya Medical Supplies Authority Act, saying those changes affected county functions.

The court also directed parliamentary leaders to coordinate earlier when bills are introduced so they can classify them properly and avoid later disputes. More broadly, the ruling clarifies the balance of power between Kenya’s two legislative houses and is likely to influence future budget and finance legislation.