Blow to salaried Kenyans as court delivers night ruling on March deduction for housing levy
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High Court declines to issue conservatory on the implementation of housing levy deduction
High Court declines to issue conservatory on the implementation of housing levy deduction.
On March 20, the High Court in Nairobi opted not to provide conservatory orders concerning the Housing Levy’s implementation.
Magare Gikenyi, Pauline Kinyanjui, and three other parties petitioned for a stay order to halt the government from deducting the 1.5% Housing Levy from every Kenyan employee’s paycheck beginning in March 2024.
This was after President William Ruto assented to the Affordable Housing Bill on Tuesday, March 19.
Justice Mwita considered the case urgent, refusing to issue conservatory orders having been satisfied that it raised fundamental questions that need to be determined promptly.
“It is hereby ordered that pleadings be served to all parties immediately and that respondents and interested parties do file responses to the application and petition within 7 days after service,” Justice Mwita directed.
The petition had listed the Cabinet Secretaries responsible for Treasury and Lands among 22 respondents.
Gikenyi and others were told that they would have seven days after service to file a supplementary affidavit, if need be, together with written submissions to the application and petition not exceeding 15 pages.
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Lands Cabinet Secretary Alice Wahome and her National Treasury counterpart Njuguna Ndun’gu and other respondents will then have seven days after service to file and serve written submissions to the petition not exceeding 15 pages.
The highlighting of the submissions was set for May 16, 2024.
Gikenyi while petitioning the court to declare the Housing Levy unconstitutional argued that corporations were being barred from owning a house through the Affordable Housing programme.
He stated that corporations pay tax and contribute to the economy and as such, barring players from the sector from owning a house was discriminatory.
In January 2024, the court declared the Housing Levy unconstitutional on the grounds that only salaried Kenyans were being taxed while the program was benefiting all citizens.
Parliament then tabled Affordable Housing Bill, 2024, which now ensures that every Kenyan will now pay the Housing Levy.
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