December 2, 2024
3-Judge Bench Rules On Suspension Of Housing Levy

3-Judge Bench Rules On Suspension Of Housing Levy

On Thursday, July 11, a three-judge bench declined to suspend the Housing Levy pending the hearing and resolution of Magare Gikenyi’s case.

The petitioner filed the case in March 2024, challenging the Affordable Housing Act, 2024, as discriminatory against corporations.

Justices John Chigiti, Olga Sewe, and Josephine Mong’are, while disagreeing with the petitioner’s prayers, directed that the case be heard and decided on a priority basis.

Gikenyi had argued in court that section 48(2) of the Act prohibited corporations from owning a home, despite the fact that the entities paid taxes and contributed to the Kenyan economy.

The petitioner criticized the move as discriminatory and contrary to the spirit of the Constitution and other laws.

“We are convinced that the public interest sits in the favour of not granting the orders but prioritise this petition and hearing,” the 3-judge bench ruled.

“The final orders are that we issue that the application dated April 2 and April 8, be and hereby dismissed for lack of merit.”

With the prayers to suspend the housing levy pending the outcome of the case dismissed Kenyans will continue to face a mandatory 1.5 percent salary deduction.

Aside from citing corporate discrimination, Gikenyi argued that not all Kenyans should be subjected to the mandatory salary deduction for the Housing Fund kitty because not everyone wanted a house.

The petitioner, a doctor by profession, also claimed that Kenyans had no say in the building’s location, style, architectural design, or mode of mortgage payment.

Gikenyi had named Cabinet Secretaries for Lands and National Treasury, as well as the Attorney General, as respondents to the petition.

Because the Act originated in Parliament, the National Assembly and the Senate were also named as respondents.

3-Judge Bench Rules On Suspension Of Housing Levy

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