Members of Parliament allied with the Azimio la Umoja – One Kenya coalition are now demanding an immediate refund of the Housing Levy deducted from their payslips and other support staff in January.

The MPs, through National Assembly Minority Leader Opiyo Wandayi, argue that the deductions by the Parliamentary Service Commission (PSC) were illegal based on the Court of Appeal ruling delivered on Friday, January 26.

“I am therefore writing to demand a commitment from the PSC that it will refund, without any delay, the January 2024 housing levy deductions for MPs and PSC staff. As it stands, such deductions are an illegality and fly in the face of the clear court ruling. It amounts to contempt of court,” the Ugunja MP stated in a letter addressed to PSC Chairman and National Assembly Speaker Moses Wetangula on Thursday.

“The ruling effectively stopped any further deductions from employees’ salaries towards the impugned Affordable Housing Programme pending hearing and determination of the main appeal. Despite the above developments, PSC still proceeded to effect the 1.5 per cent Housing Levy deductions on MPs and PSC staff salaries for January 2024.”

Wandayi argues that the August House, charged with the mandate of making and passing the country’s laws, should take a leading role in safeguarding the rule of law.

“Honourable Chairman, the institution of Parliament of Kenya plays a key role in the functioning of our nascent democracy and must, at all times, be at the forefront in protecting the rule of law and constitutionalism. I hope your good office will strive to protect its standing in society,” the lawmaker added.

The State suffered a setback on Friday after the Appellate Court declined to suspend the High Court decision that declared some sections of the Finance Act, 2023, including Housing Levy, unconstitutional.

A three-judge bench comprising Justices Lydia Achode, John Mativo and Mwaniki Gachoka declined a plea by Cabinet Secretary National Treasury and Planning Njuguna Ndungu, Attorney General Justin Muturi and Kenya Revenue Authority to suspend the High Court Judgement pending the hearing of their appeals.

“…We direct that the appeals be heard expeditiously so that the issues raised in the appeals can be resolved with finality,” the judges ruled.

The High Court had in November last year found that the controversial levy lacked a comprehensive legal framework.

However, the court granted the State’s request for a 45-day stay of the orders to allow its lawyers to file an appeal.

President William Ruto has vowed to challenge the ruling at the Supreme Court, saying the ruling will hurt thousands of jobless Kenyans set to benefit from the affordable housing programme.