The Lower Eastern Times Opening The Third Eye
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The Court of Appeal has rejected a request to lift the High Court’s suspension order on the housing levy, which was deemed unconstitutional.
In a ruling issued on Friday, Appellate Court judges Lydia Achode, John Mativo, and Paul Gachoka emphasized the importance of public interest in the case, echoing the High Court’s verdict that the levy lacked a legal basis.
According to the court’s decision, “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. This is because if the stay sought is granted at this stage, should the appellate Court affirm the impugned decision, then some far-reaching decisions that will have been undertaken pursuant to the impugned laws may not be reversible.”
The judges further stated, “Public interest, in our view, awaits the determination of the issues raised in the intended appeals.”
Last November, a High Court judge ruled that petitions against the Finance Act 2023, which included challenges to the housing levy, violated Article 10, 2 (a) of the constitution.
“We find that the introduction of the housing levy amendment to section 84 lacks a comprehensive legal framework in violation of Article 10 of the constitution, that levy against persons in formal employment without justification is discriminatory and irrational,” said Majanja in his judgment on behalf of a three-judge bench, which also included Lawrence Mugambi and Christine Meoli.
The levy, a crucial component of the Finance Act, began being deducted from formally employed Kenyans in July, with the Kenya Revenue Authority (KRA) tasked as the collection agency. Employers have been remitting their 1.5 percent contribution alongside a similar rate for their employees.
The government had argued that the levy would help realize its ambitious plan of constructing affordable homes for low-income Kenyans. The Finance Bill 2023 was passed by parliament on June 22, 2023, and later assented to by President William Ruto on June 26.
