The Consumers Federation of Kenya (COFEK) has filed a constitutional petition at the High Court in Nairobi challenging several provisions of the Finance Bill, 2026, terming them unconstitutional, disproportionate and harmful to public interest if enacted.

In a certificate of urgency filed before the Constitutional and Human Rights Division of the High Court, COFEK argues that the proposed law raises ‘grave and substantial constitutional questions’ touching on taxation, privacy, fair administrative action, public participation and Kenya’s obligations under regional treaties.

The petition, filed through advocates Tali Israel Tali and Mulongo Haron Makhanu of Tali Tali Advocates, seeks conservatory orders to halt the enactment and implementation of contested provisions currently under consideration by Parliament.

Among the challenged proposals is a withholding tax on scrap metal transactions, which the petitioners argue could have a disproportionate and potentially punitive effect on low-income earners and informal sector operators.

COFEK is also challenging proposed virtual asset reporting requirements, saying they would amount to mass financial surveillance without sufficient safeguards on privacy, oversight and data protection as guaranteed under the Constitution and the Data Protection Act.

The petition further disputes proposed expansions of the powers of the Commissioner-General of the Kenya Revenue Authority (KRA), arguing that they would allow for tax assessments and determinations without adequate procedural safeguards such as notice and fair hearing.

In addition, the consumer rights lobby is opposing the proposed removal of VAT zero-rating provisions on essential goods and services, warning that the changes could have wide-ranging social and economic consequences.

COFEK has also raised concerns over proposed amendments that it says may conflict with Kenya’s obligations under the East African Community framework and customs protocols.

According to the certificate of urgency, the Finance Bill process is still ongoing in Parliament, creating what the petition describes as an imminent risk that the contested provisions could be enacted before the court has an opportunity to determine their constitutionality.

The lobby group argues that the legislative process has not met the constitutional threshold for public participation in relation to some of the proposals, citing Articles 10 and 118 of the Constitution.

It further contends that once enacted, the provisions would immediately affect millions of Kenyans, including consumers, taxpayers, businesses, investors and informal sector workers, thereby causing irreversible harm if not halted.

COFEK is urging the court to certify the matter as urgent and grant interim conservatory orders to preserve the constitutional status quo pending the determination of the petition.