The Court of Appeal has upheld a High Court order suspending the collection of President William Ruto’s much-hyped housing levy.
A 3-justice bench comprising of Justices Lydia Achode, John Mativo, and Mwaniki Gachoka, ruled that the housing levy will continue to remain suspended pending the hearing and determination of the case.
The judges argued that it would be unfair to deduct the money as it could not predict its final verdict.
“The trial 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, the 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 according to the impugned laws may not be reversible. Public interest in our view tilts favor of not granting the stay or the suspension sought. Public interest tilts in favor awaiting the determination of the issues raised in the intended appeals,” the judges ruled.
This order is a major victory for Kenyan workers and a setback for the government’s plans to fund affordable housing initiatives.
President Ruto’s administration introduced the Finance Act of 2023, the tax aimed to fund affordable housing by imposing a 1.5% levy on Kenyan employees.
As such, Raila Odinga’s ODM party hailed the Court of Appeal for suspending the housing levy saying it was a big win for Kenyans.
“We thank the Court of Appeal for standing with the people of Kenya on the controversial issue of Housing Levy. This is a victory for Kenyans,’ the party said in a statement.
