June 14, 2024

Ruto responds after High Court terms Housing Levy unconstitutional

2 min read
Ruto responds after High Court terms Housing Levy unconstitutional

President William Ruto vows to comply with High Court order to align housing levy in accordance with the constitution

President William Ruto vows to comply with High Court order to align housing levy in accordance with the constitution.

The government intends to adjust its policies, according to President William Ruto, following the High Court’s declaration of some Finance Act, 2023 provisions—including the Housing Levy—unconstitutional.

Speaking on Tuesday during the 5th Congress of the International Trade Union Confederation- Africa held in Nairobi, Ruto said the government would respect the court’s ruling but maintained the housing program is important for the country’s long-term aspirations including job creation.

“I know the court has said we should go and readjust the law to make it aligned appropriately, that, we are going to do,” Ruto noted in his statement.

President Ruto said the affordable housing project launched by his administration early this year has so far created 120,000 jobs

He refuted claims that the housing project was mainly aimed at benefitting the government and not Kenyans as intended.

The president reassured that the controversial project would continue to create more vacancies in the job markets further projecting that by 2027, the plan would have created over 500,000 jobs.

“Kenya is a country of workers, as I told you, I have kept my commitment and we now have 120,000 workers. My plan is that by 2027 we will have half a million people working,” he noted.

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The response by Ruto comes after the High Court on Tuesday declared the housing levy as contained in the controversial Finance Act, 2023 unconstitutional.

A 3-judge bench comprising Justices David Majanja, Christine Meoli, and Lawrence Mugambi ordered the government to cease effecting Housing Levy deductions holding it contravenes the Constitution.

“The levy against persons in formal employment to the exclusion of other non-formal income earners without justification is discriminatory, irrational, arbitrary, and against the constitution,” Justice David Majanja ruled.  

However, hours later, the same court granted stay orders requested by the government, allowing the government to retain Housing Levy funds for 45 days.

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