Court of Appeal Stops Affordable Housing Deductions, Cite Unfair Targeting and Legal Framework Concerns
The Court of Appeal issued an order on Friday, directing the government to cease Housing Levy deductions until the cases challenging the program are heard and resolved.
The three-judge bench, comprising Justices Lydia Achode, John Mativo, and Mwaniki Gachoka, emphasized that the housing levy remains suspended, in line with the High Court’s earlier declaration.
The cessation of charge deductions occurred following the expiration of the government’s collection window on January 26.
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The judges argued that deducting the funds would be unjust, considering the uncertainty of the final verdict. Refunding the money, if the levy is deemed unconstitutional, would complicate the legal proceedings.
The court found that the Housing Levy unfairly targeted a specific segment of Kenyan citizens – those with payslips. The trial Court highlighted the introduction of the levy without a legal framework and deemed it prejudicial to a specific group of individuals.
The judges stressed that public interest supports awaiting the appeal’s determination to avoid irreversible decisions made under the contested laws.
The judges further mandated the swift hearing of four consolidated appeals to resolve the raised issues. The appellate court, on January 3, 2024, upheld the status quo on levy collection until a final decision is made.
According to the Court of Appeal’s judgment on January 3, 2024, the ruling on consolidated applications would be delivered on January 26, 2024. During this period, the court maintained the existing status quo.
ALSO READ: High Court Declares Ruto’s Housing Levy Unconstitutional
In the January 3 ruling, the three-judge bench heard the state’s argument, asserting that failing to grant stay orders on the High Court decision would result in unimaginable consequences.
The High Court had, on November 28, 2023, declared the housing levy unconstitutional, citing discrimination based on its remittance by Kenyans in formal employment.
The court, however, allowed the state’s request for stay orders until January 10, 2024, pending an appeal.
Court of Appeal Stops Affordable Housing Deductions, Cite Unfair Targeting and Legal Framework Concerns
