High Court Issues Ruling on Petition to Suspend Housing Levy

The High Court on Thursday, July 11, refused to stay an application for an injunction to stop the implementation of the affordable housing levy.

A three-judge bench of Lady Justice Olga Sewe, Justice John Chigiti and Lady Justice Josephine Mongare ruled that the public interest tilted in favour of not granting the order.

"We have no doubt that the affordable housing levy is a matter that has generated a lot of public interest. We are also convinced that the public interest tilts in favour of not granting the order," the court ruled.

The bench further observed that the petitioners had failed to make out a case that would warrant the issuance of a conservatory order.

Chief Justice Martha Koome had appointed the three-judge bench in March to hear the case after President William Ruto signed into law the Affordable Housing Bill 2023, paving the way for deductions.

The petitioners challenged, among other things, a section of the law that seeks to designate the Director General of the KRA as the collector of the levy.

“The Affordable Housing Act 2024, essentially tries to introduce communist ideologies yet, there is nowhere in the Constitution which allows the government to introduce communist ideologies. Kenya is not a communist state and the constitution does not envisage it,” read part of the petition.

The Affordable Housing Act 2024 establishes a fund into which the levy is paid and the fund is managed by the Affordable Housing Board, which is responsible for the stewardship of the monies raised through the Housing Levy.

KRA is designated as the collector of the levy.