In Summary

  • The court declared Housing Levy introduced in the Finance Act is unconstitutional.
  • The three judge bench consisted ofJustices David Majanja, Christine Meoli and Lawrence Mugambi
  • The ruling now bars deduction of funds from salaries towards the Housing Levy.

The high court has declared that the Housing Levy introduced in the Finance Act is unconstitutional.

The three judge bench consisted of Justices David Majanja, Christine Meoli and Lawrence Mugambi delivered the ruling on Tuesday, November 28.

Rhe judges ruled that the Finance Act 2023 amendment to Section 84 of the Finance Act amending the Employment Act introducing the Housing Levy is unconstitutional, adding that the levy had lacked a comprehensive legal framework and is irrational.

“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.

The levy was accused of violating the principles of taxation and as contained in the Finance Act 2023 is discriminatory and unfair for making a distinction between the formal and informal sectors thus creating unequal and inequitable principles.

READ Also: President Ruto Assents To Finance Bill 2023

The ruling effectively bars Ruto’s administration from deducting funds from salaries towards the Housing Levy.

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