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High Court Issues Ruling On Housing Levy

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milimanilawcourts

The High Court has ruled the Housing Levy introduced through the Finance Act 2023 is legal and constitutional.

In a ruling delivered by a three-judge bench on Tuesday, October 22, the Housing Levy was properly enacted and in accordance with the Constitution.

The three-judge bench comprising Justices; Olga Sewe, John Chigiti, and Josephine Mong’are ruled that the public participation done during the introduction of the levy was sufficient.

Six cases had been filed challenging the law and the affordable housing levy, which is imposed at a standard rate of 1.5 percent of an employee’s gross salary or a person’s gross income received or accrued.

“It is clear that the National Assembly and the Senate focused on stakeholders for the public participation. It cannot be denied that the public participation took place.

“It is our finding that the levy is properly in place and in accordance with the Constitution,” the judges ruled.

The three-judge bench also disagreed with the petitioners who argued that the Housing Levy was discriminatory.

“It is therefore our finding that section 4 of the Affordable Housing Act is not discriminatory and does not infringe on Article 27 of the constitution,” they said.

This comes after Chief Justice Martha Koome appointed a three-judge bench on 19 March to hear and determine a number of cases challenging the implementation of the new Affordable Housing Act.

President William Ruto on March 19 signed the Affordable Housing Bill 2023 into law, paving the way for the reintroduction of the controversial housing levy deductions.

The Housing Levy was challenged by civil society and some Kenyans in their individual capacity, such as Dr Magare Gikenyi from Nakuru.

Also Read: KRA Gives Way Foward On Housing Levy Deductions

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