Unconstitutional! Court of Appeal orders government to stop Housing Levy deductions

The Court of Appeal has ordered the government to stop Housing Levy deductions until cases filed against the programme are heard and determined.

The court declared some sections of the Finance Act, 2023, including Housing Levy unconstitutional.

“…we direct that the appeals be heard expeditiously so that the issues raised in the appeals can be resolved with finality,” the judges ruled.

This means Kenyans will not continue to contribute 1.5% of their salary towards the housing levy until the appeal is conclusively heard.

While dismissing the four applications seeking a stay lodged in court by the state, the judges noted that the High Court held that the Housing Levy was introduced without a legal framework.

“It also held that the levy was targeting a section of Kenyans. In our view, public interest lies in awaiting the determination of the appeal. This is because if the stay sought is granted at this stage, should the appellate court affirm the impugned decision, then some far-reaching decisions that will have been undertaken pursuant to the impugned laws may not be reversible,” the appellant judges stated.

“Public interest in our view tilts favour in not granting the stay or the suspension sought. Public interest tilts in favour awaiting the determination of the issues raised in the intended appeals. We find and hold that none of the 4 consolidated applications satisfies both limps. Accordingly, civil applications Nos. E577 of 2023, E581 of 2023, E585 of 2023 and E596 of 2023 are hereby dismissed.”