Panel of judges rejects bid to get housing levy suspended

By , July 12, 2024

In a significant legal development, a three-judge bench has refused to suspend the controversial housing levy pending the outcome of a case filed earlier this year

.The petitioner, Magare Gikenyi, lodged the case in March, challenging the newly enacted Affordable Housing Act, 2024 on the grounds of alleged discrimination against corporate entities.

Gikenyi argued that Section 48(2) of the Act unjustly bars corporations from property ownership despite their substantial contributions to the national economy through taxes.

He contends that such provisions violated constitutional principles and existing laws safeguarding corporate rights.

“We are convinced that the public interest lies in prioritising the hearing of this petition,” ruled the bench comprising Justices John Chigiti, Olga Sewe and Josephine Mong’are.

The judges declined the petitioner’s request to suspend the housing levy, saying Gikenyi’s application lacked merit. The housing levy, which composes a 1.5 percent deduction from lack of public consultation on housing preferences such as location, architectural style, and mortgage terms imposed by the Act.

The petition lists the Cabinet secretaries for Land and the National Treasury, the Attorney General, the National Assembly, and the Senate as respondents. This underscores the broad implications of the case, given the legislative origin of the contested Act.

The Act establishes a framework for collecting the housing levy and implementation of the affordable housing projects and programmes.

President William Ruto, on 19 March, signed the Affordable Housing Bill 2023 into law.  Sections 4 and 5 of the Affordable Housing Act, 2024 relate to the imposition of the levy and deductions by employers and became effective on the date of the bill was signed.

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