The Court of Appeal has extended the period of housing levy deductions to January 26, 2024.
In a ruling made in December, the High Court had handed the government an extension to collect the 1.5% deductions until January 10 despite its ruling that the levy was unconstitutional.
However, in a ruling on Thursday, January 4, the Court ruled that the government should continue deducting the levy pending the determination of various applications before it.
The three-judge bench made the ruling after hearing the appeal filed by the National Assembly and the National Assembly Speaker Moses Wetangula.
“Upon hearing the parties, all the applications are consolidated as they arise from the same judgment of the High Court dated 28h November 2023. Civil Application No. E577/2023 is designated as the lead file. The ruling on these consolidated applications will be delivered on 26th January 2024,” read part of the ruling.
“In the meantime, the status quo obtaining as of today shall be maintained until the delivery of the ruling. Made at Nairobi this 3rd January 2024,” read the other part of the order.
Notably, the ruling is a blow to Busia Senator Okiya Omtata Okoiti and the other 55 respondents opposed to the deductions.
The bench consisted of Justices Lydia Achode, John Mativo and Paul Gachoka.
Notably, the three considered the government’s plea through the Attorney General Justin Muturi to allow for the collection of the levy until a ruling is made.
Housing Levy Blocked by High Court
The High Court declared the housing levy unconstitutional in a landmark ruling on November 29, 2023.
“An order is granted prohibiting the respondent from collecting/ charging or otherwise charging on Affordable Housing Act based on section 84 of the Finance Act and all prayers on the consolidated petition not specifically granted,” Judge David Majanja stated in the ruling.
This was after Omtata amongst other petitioners challenged the levy in court.
Also Read: Ruto Hits Out at Leaders Opposing Housing Levy
In their argument, the petitioners noted that the Finance Bill contained amendments to several laws that had nothing to do with raising revenue.
Besides, the levy imposed on salaried workers had been a cause of heavy debate amongst Kenyans since its introduction through the Finance Bill 2023.
However, the judges approved the government lawyers’ request for a 45-day stay of the order as they decide whether to appeal or make changes to the law to address the judges’ concerns.
Ruto Attacks Leaders Opposing Affordable Housing
In his new year message, President William Ruto criticized accused some leaders of derailing the affordable housing program by opposing the levy.
Ruto explained that such people are hindering the government’s plans to create jobs for Kenyan youth despite having the privilege of mortgage benefits.
Also Read: Family Issues Demands After Accident in Affordable Housing Project
He emphasized that the housing program was meant to provide decent homes for millions of Kenyans, including slum-dwellers.
Also, Ruto stated that the housing program has already created 120,000 jobs and revealed plans to employ an even greater multitude of people next year.
