The Court of Appeal has upheld the High Court ruling on the Housing Levy legislation which termed it unconstitutional.
A bench of three judges, Justice Lydia Achode, John Mativo, and Mwaniki Gachoka on Friday rescinded the prayers made by National Treasury Cabinet Secretary Njuguna Ndung’u, Attorney General Justin Muturi, and Kenya Revenue Authority to temporarily stay High Court judgment awaiting the hearing of their pleas.
“We direct that the appeals be heard expeditiously so that the issues raised in the appeals can be resolved with finality,” the judges ruled.
The verdict also held that the housing levy was targeting a section of Kenyans.
“In our view, public interest lies in awaiting the determination of the appeal. This is because if the stay they sought is granted at this stage, should the appellate court affirm the impugned decision, then some far-reaching decision that will have been undertaken pursuant to the impugned laws may not be reversible,” the Court highlighted.
Today’s ruling is a relief to salaried Kenyans who have decried the 1.5% levy deducted from their income every month.
Among the appeals taken to court against the housing levy, they argued that taxing salaried Kenyans only was discriminatory.
On November 28, 2023, the High Court ruling with a bench of three justices David Majanja , Christine Meoli, and Lawrence Mugambi faulted the implementation of the Housing Levy prescribed under the Financial Act (2023), observing that it was excluding people in the informal sector.
“The levy against persons in formal employment to the exclusion of other non-formal income earners without justification is discriminatory, irrational, arbitrary and against the constitution.” Justice Majanja ruled.
President William Ruto has been pushing for the Affordable Housing Project, launching construction in various parts of the country.
Nakuru County has already invited Kenyans to buy completed affordable housing units, although many have questioned the high cost.
Ruto welcomed 2024 with a public outcry against the judiciary, claiming corrupt officials are working to derail development projects by the government, like affordable housing.
Today’s ruling is a blow to Ruto, who recently held a meeting with the judiciary and legislature to discus corruption allegations in courts.
Opposition Leader Raila Odinga has come out to applaud the Court of Appeal for ruling against the Housing Levy.
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