Court Rules on Housing Levy Suspension

A three-judge bench has declined an application by various petitioners to suspend Affordable Housing Levy.

In a ruling on Thursday, July 11, the court said that allowing the application will be against public interest.

Justices John Chigiti, Olga Sewe and Josephine Mong’are directed the matter be heard and determined on a priority basis.

“”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 but in prioritizing these petitions for hearing and determination,” they said.

Dr Magare Gikenyi filed a petition challenging the Affordable Housing Act, 2024.

Among other issues, he cited that the Act in section 48(2) outlawed the corporations from owning a house, yet the same corporations pay tax and contribute to the economy hence discrimination.

Additionally, Gikenyi said the levy will lead to inter loss of public confidence and outright abuse of political power to the detriment of many Kenyans in the county.

“It is important to maintain constitutionalism, rule of law, Law and Order, good governance, non-discrimination and protecting of the constitution. This matter is of public interest,” read part of the petition.

He argued that it was imperative that the matter be placed before court and orders issued accordingly to preserve and safeguard public Interests.

Ruto Signs Affordable Housing Bill

This comes after President William Ruto signed into law the Affordable Housing Bill 2023 on March 19, 2024, after numerous court cases challenging its constitutionality.

Ruto’s assent made two provisions in the Act effective immediately on the March payrolls.

This included the employee deductions at 1.5% of gross per Sec4 of the Act and employer matching employee’s deductions per Sec5 of the Act.

The Affordable Housing Act established a framework for the collection of the housing levy and implementation of the affordable housing programme.

Also Read: Ruto, Gachagua Mourn David Majanja’s Death

Speaking after appending his signature to the Bill, Ruto said implementation of the Affordable Housing Programme will transform the lives of Kenyans at the bottom of the pyramid by creating jobs, providing decent housing and reducing agricultural land fragmentation.

Ruto commended the National Assembly and Senate for working round the clock to pass the Bill.

“I want to appreciate Parliament and Kenyans for their input in the Bill that I have just signed into law,” Ruto said.

He pointed out that the housing programme will ensure families across the country live in a dignified manner.

Also Read: Decorated Career of Justice David Majanja Who Declared Housing Levy Unconstitutional

Housing Levy Court Cases

In November 2023, three-judge bench comprising Justices David Majanja, Christine Meoli and Larwrence Mugambi declared the housing levy unconstitutional. 

However, in January 2024 the Court of Appeal declined to suspend the High Court order that declared the housing levy as unconstitutional.

This forced the government to come up with a new legal framework, the Affordable Housing Bill, 2023, in order to address issues raised by the courts.

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