The Law Society of Kenya has filed a petition to challenge the constitutionality of the mandatory Housing Levy in the Finance Act 2023.

In a certificate of urgency, the society claims that the levy threatens the social, economic interest of Kenyans.

The National Assembly, Kenya Revenue Authority (KRA) Commissioner General, and the Attorney General have been named as Respondents.

“The petitioner has come to this Honorable Court under extreme urgency following the decision of the Respondents to gazette and enforce the unconstitutional, unlawful and unreasonable Finance Act 2023 that introduce mandatory affordable housing levy, implementation which threatens the social economic interests of Kenyans against the principle of social justice,” reads court papers

According to the LSK, there is absolutely no justification for the government to compel its inhabitants to pay into a mandatory programme in a nation where the majority of its residents are already struggling financially due to numerous layers of taxes.

Similarly, the body of lawyers contends that employers and employees must bear a hefty duty.

It further states that implementing the contested law will further reduce employment rates in a nation already struggling with low employment rates, which is contrary to the Constitution's social justice principles.

LSK now wants the court to issue orders prohibiting the government from implementing the housing levy, further enforcing Section 10 (2) (3) of the Income Tax Act as amended by Section 7 of the Finance Act 2023.