High Court Makes Final Ruling On Housing Levy Amidst Poor Public Participation
The High Court ruled on Tuesday that the Affordable Housing Act of 2024 was properly enacted and in accordance with the Constitution, allowing the government to continue the program.
This comes after six cases were filed in court challenging the levy’s legality.
The three-judge bench, which included Justices Olga Sewe, John Chigiti, and Josephine Mongare, determined that adequate public participation was conducted and due process was followed when establishing the fund.
The judges noted that their decision focused solely on key issues raised by the petitioners in relation to the Affordable Housing Act.
The key issues for determination included whether there was adequate public participation in the matter, whether Articles 27, 40, and 43 of the Constitution were violated, and whether the Act interfered with devolution.
The court was also supposed to decide whether the government illegally used public land to build the houses without consulting the National Lands Commission (NLC).
On March 19, Chief Justice Martha Koome appointed a three-judge bench to hear and decide a series of cases challenging the implementation of the new Affordable Housing Act.
The ruling is expected to hit thousands of Kenyans, who will now have to continue paying a portion of their salaries to the government.
The government will now be able to continue the affordable housing levy deductions, which were imposed at a standard rate of 1.5 percent on an employee’s gross salary or gross income received or accrued.
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Employers will also deduct 1.5 percent of their employees’ salaries, bringing the total contribution to the government to 3%.
In her ruling, Justice Mong’are stated that the petitioners’ claim that the levy imposed on Kenyans was discriminatory was unfounded.
Josphine Mong'are: The petitioners argue that the collection of the levy is discriminatory, while the act is clear regarding the formal sector, stating that the formal sector is to be taxed on their gross salary, he did not provide for a structure on how collections from informal… pic.twitter.com/1odq4naKUr
— KTN News (@KTNNewsKE) October 22, 2024
She noted that the petitioners failed to provide a clear structure for how informal sector collections were conducted, limiting their ability to effectively challenge the case.
“The petitioners argue that the collection of the levy is discriminatory, while the act is clear regarding the formal sector, stating that the formal sector is to be taxed on their gross salary, he did not provide for a structure on how collections from the informal sector was to be made,” Mong’are observed.
High Court Makes Final Ruling On Housing Levy Amidst Poor Public Participation
