High Court Rules Okays Housing Levy
The High Court on Tuesday ruled that the Affordable Housing Act, 2024 was properly enacted and in accordance with the constitution paving the way for the government to continue with the program.
The three-judge bench comprising Justices; Olga Sewe, John Chigiti and Josephine Mong’are found that adequate public participation was conducted and due process was followed when establishing the fund. This was after six cases were filed at the courts challenging the levy’s legality.
The judges observed that their ruling solely focused on key issues that were raised by the petitioners in regards to the Affordable Housing Act.
The key issues for determination included; whether there was adequate public participation on the matter, whether Articles 27,40 and 43 of the Constitution were infringed and whether the Act clawed on devolution.
The ruling, is set to deal a blow to thousands of Kenyans who are now set to continue paying part of their salary to the government.
The government will now be able to continue with the affordable housing levy deductions, that it imposed at a standard rate of 1.5 percent on the gross salary of an employee or the gross income of a person received or accrued.
Employers will also contribute a 1.5 percent deduction from their employees’ salaries, bringing the total contribution to the government to 3 percent.
