|
LISTEN TO THIS THE AFRICANA VOICE ARTICLE NOW
Getting your Trinity Audio player ready...
|
Housing Levy Remains Unconstitutional as Court of Appeal Upholds Ruling
The Court of Appeal Friday declined to suspend a High Court order declaring the controversial Housing Levy unconstitutional, throwing a wrench into President William Ruto’s ambitious housing program.
In a morning ruling, the judges cited public interest as the reason for their decision. They highlighted the High Court’s finding that the Levy was introduced without a proper legal framework and targeted only a specific segment of Kenyans.
“Granting the stay could lead to irreversible consequences if the appeal later affirms the High Court’s decision,” the court declared, emphasizing the need to wait for the final verdict before allowing the Levy to continue.
In November 2023, the High Court ruled that the Levy violated Article 10 of the Constitution by lacking a comprehensive legal framework and discriminating against Kenyans in formal employment. Judge David Majanja, on behalf of the three-judge bench, stated that the government’s justification for the Levy was “discriminatory and irrational.”
The Levy, a key pillar of the 2023 Finance Act, began affecting formal employees’ salaries in July, with KRA tasked with its collection. Employers were also required to contribute 1.5% alongside their employees.
The government had touted the Levy as crucial for funding its affordable housing program for low-income Kenyans.
Despite the setback, President Ruto vowed Friday to continue with the housing program, claiming he has received overwhelming public support. Speaking in Meru County, he challenged critics and asserted, “The people have spoken! Are we building houses or not? Show me your hands! My mandate comes from the people, not the courts. I have enough support to push this program forward.”
However, the Court of Appeal’s stance remains firm. “The lack of a legal framework and targeting of a specific group remain key concerns,” the ruling reiterated. “Public interest demands we wait for the appeal’s outcome before any further action.”
The Housing Levy has become a battleground between the ruling Kenya Kwanza coalition and the opposition Azimio la Umoja. Raila Odinga has urged employers to stop remitting the Levy, adhering to the High Court’s decision.
Nevertheless, President Ruto insists on the program’s importance. Deputy President Rigathi Gachagua echoed this sentiment, urging the judiciary to consider the Levy’s potential benefits – mass construction of affordable housing units to address Kenya’s housing crisis.
LEAVE A COMMENT
You must be logged in to post a comment.