The Consumer Federation of Kenya (COFEK) has filed a petition at the Milimani Law Courts seeking to stop the implementation of several provisions in the Finance Bill, 2026, over claims that they are unconstitutional and pose risks to consumers, taxpayers and businesses.
The case was lodged by COFEK through its Secretary General, Stephen Mutoro. The organisation is seeking conservatory orders to suspend the enactment and enforcement of the contested provisions pending the hearing and determination of the petition.
According to court documents, COFEK argues that the legislative process is at an advanced stage, raising the likelihood that the disputed provisions could be passed into law before the court addresses the constitutional concerns raised.
“The impugned legislative process is active, ongoing and approaching the final stages of parliamentary consideration, thereby creating an imminent risk that the provisions may be enacted into law before the constitutional questions raised herein are considered,” reads part of the filing.
COFEK contends that the proposed amendments raise serious constitutional issues, including concerns over 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, establishing virtual asset reporting requirements, and expanding the powers of tax authorities through anti-tax avoidance and tax assessment measures.
The federation further argues that some of the provisions are inherently incapable of being implemented in a constitutional manner and could result in immediate harm once enacted.
“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,” COFEK states in its submission.
It warns that if the Bill becomes law, it will impose significant financial, regulatory and compliance burdens on consumers, businesses, investors and other stakeholders across the country.
COFEK also maintains that some of the alleged violations—particularly those related to public participation, privacy safeguards and Kenya’s international obligations—may not be effectively remedied after the law comes into force.
The organisation is therefore urging the court to issue conservatory orders to preserve the subject matter of the petition while the constitutional issues raised are fully heard and determined.
