Justice Mugure Thande has this afternoon dismissed the application by the state which sought to set aside the order she had issued suspending the act.
Judge Thande says the state did not give sufficient reasons to warrant her to lift the orders.
The order has been extended pending the hearing and determination of the case.
The judge has also forwarded the file to the CJ to empanel a bench to hear the petition.
The High Court in Nairobi had last week extended the orders issued in the case filed by Busia Senator Okiya Omtatah and Lawyer Otiende Omollo pending its hearing and determination.
In their submission, the duo argued that the state will suffer no harm if the orders are extended and conservatory orders issued.
In their case, they claimed that some sections threaten the right to property, access to justice and violate the Constitution in general.
Omtatah says the petition raises substantial issues of law and the file should be forwarded to the Chief Justice to appoint a bench of judges to hear and determine the matter.
However, in his application, Treasury Cabinet Secretary Njuguna Ndung’u has asked the court to set aside the orders.
He argued that this will bring a budgetary crisis to the government.
He told Justice Mugure Thande that the government had continued to lose Sh578 million daily in taxes since the orders were issued on June 30.
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