In Summary:
- The High Court in Nairobi declined to issue conservatory orders regarding the implementation of the Housing Levy.
- Petitioners sought to prevent the deduction of a 1.5% Housing Levy from all salaried Kenyans, starting March 2024, after President William Ruto assented to the Affordable Housing Bill.
The High Court in Nairobi, on Wednesday, March 20, made a late-night decision regarding the implementation of the Housing Levy, declining to issue conservatory orders as sought by petitioners.
The petitioners, including Magare Gikenyi and Pauline Kinyanjui, had filed a petition seeking a stay order to prevent the government from deducting the 1.5% Housing Levy from all salaried Kenyans, as stipulated in the Affordable Housing Bill that was assented to by President William Ruto on Tuesday, March 19.
Instead of issuing conservatory orders, Justice Mwita deemed the petition urgent, acknowledging that it raised fundamental questions that needed prompt determination.
As a result, Justice Mwita ordered that pleadings be served to all parties immediately, with respondents and interested parties required to file responses to the application and petition within seven days after service.
Justice Mwita directed, ‘It is hereby ordered that pleadings be served to all parties immediately. Respondents and interested parties are instructed to file responses to the application and petition within 7 days after service.’
The petition listed the Cabinet Secretaries responsible for Treasury and Lands among the 22 respondents.
Petitioners were given seven days after service to file a supplementary affidavit, if necessary, along with written submissions not exceeding 15 pages.
Lands Cabinet Secretary Alice Wahome, National Treasury counterpart Njuguna Ndun’gu, and other respondents were similarly given seven days after service to file and serve written submissions not exceeding 15 pages. The highlighting of submissions was scheduled for May 16, 2024.
Gikenyi, one of the petitioners, argued that the Housing Levy was unconstitutional as it barred corporations from owning houses through the Affordable Housing program.
He contended that such a provision was discriminatory since corporations also contributed to the economy.
Notably, in January 2024, the court declared the Housing Levy unconstitutional on the basis that only salaried Kenyans were being taxed while the benefits of the program extended to all citizens.
In response, Parliament tabled the Affordable Housing Bill, 2024, ensuring that every Kenyan would now pay the Housing Levy.