In Summary

  • The stay orders follow a request by the respondents in the case
  • The court declared the housing levy unconstitutional

The High court has granted stay orders allowing salaried Kenyans to continue paying the affordable housing levy until January next year.

This decision comes after the court declared the levy unconstitutional citing a violation of the constitution.

The three-judge bench, composed of Justices David Majanja, Lawrence Mugambi, and Christine Meoli, issued the stay orders in response to a request by the respondents, led by lawyer George Murugara, for a 45-day grace period to comply with the court’s decision.

READ ALSO:Court Declare Housing Levy Unconstitutional

Informal sector Left Out

The court took issue with the government’s decision to only tax salaried Kenyans yet leaving out Kenyans in the informal sector.

“We find that the introduction of the housing levy amendment to section 84 lacks a comprehensive legal framework in violation of Article 10 of the constitution, that levy against persons in formal employment without justification is discriminatory and irrational, “Justice Majanja said in the ruling.

“An order is granted prohibiting the respondent from collecting/ charging or otherwise charging on Affordable Housing Act on the basis of section 84 of the Finance Act and all prayers on the consolidated petition not specifically granted,”

“The respondents are also entitled to exercise the right of appeal, to the court of appeal and even the Supreme Court. We are inclined to grant the stay for a temporary period, pending the filing of the formal application at the Court of Appeal,”

READ ALSO:Court Directs Speedy Conclusion of Ksh 400 M Transnational Online merchant Dispute

Since July, both employers and employees have been remitting a 1.5 percent contribution as part of the affordable housing levy.

The court granted stay orders restraining of the affordable housing levy until January 10 2024

READ ALSO:Court Receives second Petition challenging Increased Levies on Passports,ID cards,Birth,Marriage and Death certificates

 

 

 

November 28, 2023

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