The Court of Appeal has declined to overturn the High Court's decision that deemed the housing levy unlawful.

In a decision issued on Friday, Appellate Court judges Lydia Achode, John Mativo, and Paul Gachoka recognized public interest in the case, emphasizing the High Court's conclusion that the Housing Levy was implemented without a legal framework.

PHOTO | COURTESY courts

“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, 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 pursuant to the impugned laws may not be reversible,” reads the court ruling in part.

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“Public interest in our view awaiting the determination of the issues raised in the intended appeals.” The judges added.

In November of last year, a High Court judge determined that petitions contesting the Finance Act 2023 breached Article 10, 2(a) of the Constitution.

PHOTO | COURTESY courts 

"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," Majanja read in his judgment on behalf of a three-judge bench.

The other two judges were Lawrence Mugambi and Christine Meoli.

The Levy, a key component of the Finance Act, began being deducted from legally employed Kenyans in July, with the Kenya Revenue Authority (KRA) serving as the collection agent.