The Kenyan government remains steadfast in its collection of the Housing Levy, asserting that the controversial deductions will persist until January 10, 2024.
Cabinet Secretary Alice Wahome from the Ministry of Lands, Public Works, Housing, and Urban Development issued a statement directing all employers to continue deducting the levy until the specified date.
This decision comes in the wake of a High Court ruling on Tuesday, which granted stay orders preventing the suspension of the affordable housing levy until January 10.
The court, comprising Justices David Majanja, Lawrence Mugambi, and Christine Meoli, deemed the levy unconstitutional, citing its exclusive targeting of salaried workers.
The government was granted a 45-day stay in light of this ruling.
Lawyer George Murugara, representing the respondents, argued that the stay orders were necessary to allow the government to make essential adjustments to its taxation procedures, ensuring compliance and preventing legal action for contempt.
The Housing Levy, a crucial element of the Finance Act, commenced deductions from formally employed Kenyans in July, with the Kenya Revenue Authority (KRA) entrusted as the collecting agent.
CS Wahome emphasizes that employers will persist in remitting their 1.5 percent contribution, mirroring the rate applicable to their employees.
The unexpected High Court decision presents a challenge for President William Ruto, who has identified the Housing plan as a pivotal initiative for his administration.
Despite the setback, Ruto expressed his commitment to respecting the court’s decision.
Deputy President Rigathi Gachagua urged the Judiciary to consider the broader societal impact of its decision, contending that the levy plays a crucial role in enabling the government to address Kenya’s housing shortage by constructing homes on a large scale.
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Government Persists In Housing Levy Collection Despite Court Setback, Government Persists In Housing Levy Collection Despite Court Setback
