The high court in Kenya has ordered President William Ruto’s administration to stop the collection of Housing Levy as it contravenes the constitution.
In the ruling, the court noted that the levy imposed on persons in formal employment excluding other non-formal income earners without justification is discriminatory, irrational, arbitrary, and against the constitution.
Kenya Revenue Authority (KRA) was mandated as the collecting agent of the 1.5 percent contribution levied from the employees alongside a similar rate for their employers as well.
The ruling was delivered by Justices David Majanja, Christine Meoli, and Lawrence Mugambi who were appointed by Chief Justice Martha Koome.
“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,” Majanja read in his judgment.
“An order is granted prohibiting the respondent (government) from collecting, charging on otherwise the charge known as the affordable housing act,” he added.
Busia Senator Okiya Omtatah, the Law Society of Kenya, and others challenged the Finance Act in court, saying it was unconstitutional.
The Finance Bill 2023 was passed by parliament on June 22, 2023, and later assented by President William Ruto on June 26.
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