Relief for Kenyans As Court of Appeal Halts Affordable Housing Levy

By Samuel Ouma

The Court of Appeal ordered the government on Friday to stop the Housing Levy deductions until cases filed against the program are heard and decided.

In its ruling, the three-judge bench consisting of Justices Lydia Achode, John Mativo, and Mwaniki Gachoka approved the High Court's decision that ruled the deductions unconstitutional.

The court ordered that charges would not be deducted after the government's allotted deadline for collecting the funds expired on January 26.

“The trial Court held that the Housing Levy was introduced without a legal framework. It also held that the levy was targeting a section of Kenyans. In our view, public interest lies in awaiting the determination of the appeal," said the judges.

High Court judges declared in November 2023 that petitions brought against the Finance Act 2023 were unconstitutional under Article 10, 2(a) of the constitution.

After the ruling, the Attorney General and the National Treasury petitioned the appellate court.

They warned the court that the suspension would cause widespread confusion and a severe budgetary crisis.

In rejoinder to the Court of Appeal’s ruling, President William Ruto said that the affordable housing programmes will go on despite the opposition.

Speaking in Meru, the eastern part of the country, just a few minutes after the court's ruling, Ruto said the programme is crucial and will create many jobs for the youths.