July 2, 2024

LSK moves to court to challenge stay order on housing levy

3 min read
LSK moves to court to challenge stay order on housing levy

LSK and Human Rights Groups moves to the Court Of Appeal to challenge the stay order on the controversial housing levy

LSK and Human Rights Groups moves to the Court Of Appeal to challenge the stay order on the controversial housing levy.

Human rights organizations and the Law Society of Kenya (LSK) intend to file an appeal against the ruling of the High Court, which permitted the government to persist in withholding the unlawful housing tax.

A day after Cabinet and Parliament filed a notice of appeal, contesting the High Court’s ruling that the housing tax is unconstitutional, the Kenya Human Rights Commission (KHRC), the Katiba Institute, the International Commission of Jurists, and the Institute for Social Accountability are the newest parties to the legal dispute that is scheduled to be heard at the Court of Appeal.

In what will be a joint suit, the human rights groups want the Court of Appeal to rule that;

1. The High Court erred in law in holding that it has no jurisdiction to examine the hardship caused by taxes, despite the requirement of social justice and fairness in Articles 10, 27, and 201.

2. The High Court erred in law in holding that money bills can only be introduced and debated in the National Assembly.

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3. The High Court erred in law in finding, contrary to the evidence on record, that public participation on the Finance Act 2023 was meaningful and adequate. The High Court further erred in law in holding that public agencies have no obligation to consider or to demonstrate how they have considered the views received.

4. The High Court erred in law by ignoring known and well-settled fundamental principles of taxation such as fairness. High Court further erred in giving the National Assembly and Executive an absolute power to tax contrary to the Constitution. 

5. The High Court erred in law in denying the Senate’s role to debate a Finance Act containing matters concerning counties and the High Court abused its discretion by issuing an unwarranted stay of execution of a judgment finding many portions of an Act unconstitutional. 

LSK President Eric Theuri said they will be challenging the Executive and Legislature’s quest to have the decision on the housing tax overturned by the Appellate Court. 

“All petitioners will strongly oppose respondents’ attempt to overturn the lower court’s finding on the illegality of the Housing Levy. We will also be seeking the abolishment of the 45-day stay order controversially issued by the lower court,” said Theuri.

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