The High Court of Kenya at Kakamega has ruled against the imposition of healthcare facilities permit fees by the County Government of Kakamega, delivering a significant judgment favoring medical practitioners. The court determined that the levy on single business permits for healthcare providers was unconstitutional and constituted double taxation.
Healthcare Facilities Permit Fees Declared Unlawful
The case, filed by Mumias West Health Care and Daniel Kassamani Wangulu, challenged the county’s authority to impose permit fees on healthcare facilities. The petitioners argued that the fees violated their rights and amounted to an unjust financial burden on medical practitioners. They sought an injunction to prevent the county from using confiscated medical equipment and enforcing the contested levy.
The Kakamega County Government objected to the case, arguing that it had already been decided in court. They further claimed that the court lacked jurisdiction to hear the matter. However, the High Court dismissed these objections, affirming its authority to rule on constitutional issues.
Court Upholds Healthcare Providers’ Rights
Judge A.C. Bett ruled in favor of the petitioners, stating that the imposition of healthcare facilities permit fees was unconstitutional. The court referenced previous decisions where similar levies on medical practitioners were deemed unlawful. It emphasized that healthcare providers already pay licensing fees to the national government, and additional county fees constituted double taxation.
The court issued a conservatory order halting the implementation of the Kakamega County Finance Act concerning single business permit fees for healthcare providers. Additionally, it directed the county to return all confiscated medical equipment to the petitioners.
Implications for Healthcare Businesses
The ruling sets a significant precedent for medical practitioners across Kenya. Counties imposing similar healthcare facilities permit fees may now face legal challenges. The decision reinforces that county governments cannot impose financial obligations beyond their constitutional mandate.
Medical professionals have welcomed the judgment, citing it as a victory against unlawful taxation. The case highlights the importance of judicial intervention in ensuring fair business regulations that do not hinder healthcare access.
The County Government of Kakamega is yet to announce whether it will appeal the ruling. The decision should influence policy discussions on the taxation of healthcare facilities at the county level.