High Court Declares Ruto’s Housing Levy Unconstitutional
The unfavorable housing levy that the Kenya Kwanza government has proposed is unconstitutional, according to the High Court.
In his decision on the petitions opposing the Finance Act 2023, Justice David Majanja declared that the court had found the levy to be in violation of Article 10, 2(a) of the constitution.
Majanja, speaking for a three-judge bench, said in their decision that they see that adding the housing levy amendment to Section 84 does not have a full legal framework, which they believe is against Article 10 of the constitution.
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He stated that the levy against people in formal employment without justification is discriminatory and irrational. Catherine Meoli and Lawrence Mugambi constituted the remaining two assessors.
Justice Majanja declared null and void sections 84, 72, and 78 of the Finance Act, in addition to prohibiting the collection of further charges.
“An order is granted prohibiting the respondent from collecting or charging on otherwise the charge known as the affordable housing act,” said the judge.
The collection of the levy, which is a fundamental component of the Finance Act, commenced in July on formally employed Kenyans. The Kenya Revenue Authority (KRA) was designated as the designated collecting agent.
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Employers have been depositing their 1.5 percent contribution in addition to the corresponding rate that they withhold from their employees.
The government justified the unwelcome deduction by claiming it would facilitate the realization of their ambitious objective of developing affordable housing for Kenyans with low incomes.
Parliament approved the Finance Bill 2023 on June 22, 2023, and President William Ruto subsequently ratified it on June 26.
On June 30, the High Court subsequently halted the execution of the legislation in response to numerous petitions that were lodged.
The Court of Appeal revoked the suspension on July 29, which allowed for a case hearing on September 13.
Senator Okiya Omtatah of Busia, along with six others, initiated legal proceedings in an effort to halt the enforcement of the Finance Act 2023.
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High Court Declares Ruto’s Housing Levy Unconstitutional
