The High Court has ruled that the housing levy is constitutional, clearing the way for the full implementation of President William Ruto’s affordable housing initiative.
The ruling was delivered by a three-judge bench composed of Justices Olga Sewe, John Chigiti, and Josephine Mong’are.
The court rejected a petition led by Busia Senator Okiya Omtatah, who challenged the levy's legality, claiming it lacked public participation and was unconstitutional.
The levy mandates a 1.5 percent deduction from employees’ salaries, with an equivalent contribution from employers, as part of the government’s target to construct 200,000 affordable housing units yearly nationwide.
In his submission, Senator Omtatah argued that the Senate and National Assembly had failed to involve all counties in public consultations, having visited only 27 out of 47.
Did you read this?
He also contended that Parliament did not consult the Commissioner of Revenue Authority, as confirmed by an affidavit filed in court.
However, the court ruled that Parliament is within its powers to impose taxes under Article 95 of the Constitution and found no violation of the law.
The judges also dismissed discrimination claims, stating that the levy applies uniformly to all Kenyans.
This ruling brings the government closer to realizing its affordable housing goals.
