Court Rules in Favor of Government on Housing Levy

A three-judge bench has ruled that the Housing Levy introduced by the Finance Act 2023 is both legal and constitutional.

Judges’ Ruling

On Tuesday, October 22, the court, led by Justices Olga Sewe, John Chigiti, and Josephine Mong’are, made the following key decisions:

• The Housing Levy complies with the constitution.
• The process of public participation during the levy’s introduction was sufficient.

ALSO READ : DCI Summons Gachagua Over Assassination Allegations

Public Participation

One of the main arguments brought by the petitioners was that there wasn’t enough public participation before the levy was introduced. However, the court disagreed, stating that the necessary participation had been conducted.

No Discrimination

The court also rejected claims that the levy was discriminatory. The petitioners argued that the levy unfairly targeted employed Kenyans by deducting 1.5% of their monthly gross salary. These deductions are meant to fund housing projects across the country.

The judges ruled that the Affordable Housing Act does not violate Article 27 of the constitution, which ensures equality and non-discrimination.

Petitioners’ Concerns

The Housing Levy was challenged by various civil societies and individuals, including Dr. Magare Gikenyi from Nakuru, who raised concerns over its fairness and constitutionality.

ALSO READ: If Anything Happens to Me, President Ruto Should Be Held Responsible – Rigathi Gachagua

Conclusion

The court’s decision means the Housing Levy will remain in place, and deductions from employed Kenyans’ salaries will continue to support national housing projects.

Source: Milimani Law Courts, Ruling Delivered on October 22, 2024.