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Court of Appeal Decision on Housing Levy Petition Set for January 26

Summary:

The Court of Appeal will rule on January 26, 2024, on whether to suspend the housing tax temporarily. The decision follows oral submissions from the Attorney General, KRA, Treasury, and Parliament, seeking an extension beyond the January 10 deadline, countered by arguments from Senator Okiya Omtata and human rights groups.

The Court of Appeal, comprising Judges Lydia Achode, John Mativo, and Mwaniki Gachoka, is scheduled to make a crucial decision on the housing tax issue on January 26, 2024. This decision stems from an appeal lodged by key entities, including the Attorney General, KRA, Treasury, and Parliament.

The appeal challenges conservatory orders issued by the lower court regarding the implementation of the housing tax, with a looming deadline of January 10, 2024.

During Wednesday’s hearing, the Appellate court listened to oral submissions from the applicants, who urged the judges to extend the stay orders safeguarding the tax enforcement beyond the imminent deadline.

On the opposing side, respondents, led by Busia Senator Okiya Omtata, the Law Society of Kenya (LSK), and human rights groups, argued that the introduction of the Affordable Housing Bill, 2023, inadvertently acknowledged the absence of a legal framework for the Housing Levy under the Finance Act, 2023.

The decision on January 26 will determine whether the housing tax faces a temporary suspension or proceeds as planned.