Win for Gov't as Court Issues Ruling on Housing Levy

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

In a ruling delivered by Justices Olga Sewe, John Chigiti and Josephine Mong'are on Tuesday, October 22, it was noted that the levy is properly in place and in line with various provisions of the constitution.

Additionally, the bench ruled that the public participation done during the introduction of the levy was sufficient.

The ruling on public participation was done following the arguments by the petitioners who opined that Parliament did not conduct enough public participation before introducing the levy.

"It is our finding that the levy is properly in place and in accordance with the Consitution," the judges ruled.

Further, the bench also disagreed with the petitioners who argued that the Housing Levy was discriminatory.

The petitioners had cited the guidelines that were outlined in the Act on the salary deductions for Kenyans who are employed.

Every month, employed Kenyans face a 1.5 per cent salary deduction of their gross pay. The deductions go towards the funds which help in the implementation of housing projects across the country.

"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," the bench ruled.

The Housing Levy had been challenged by civil societies and some Kenyans in their individual capacity such as Dr Magare Gikenyi from Nakuru.