LSK challenges legality of housing levy

By Peter Ochieng 

The Law Society of Kenya (LSK) is back in the court, this time round challenging constitutionality of the housing levy.

The levy, pegged at 1.5 per cent of employees salaries is contained in the Finance Act, 2023.

In the matter certified as urgent, LSK alleges that the mandatory affordable housing levy, threatens the social economic interest of Kenyans.

Kenya Revenue Authority (KRA Commissioner General, the National Assembly and the Attorney General have been named as respondents in the case.

LSK says there is no sense in Kenyans being forced to contribute to a housing scheme, yet most of them are grappling with the high cost of living.

“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,” the advocate's body states in court papers.

LSK is urging the court to issue orders prohibiting the government from implementing the housing levy.

Implementation of the Act, which was supposed to take effect on 1st July, 2023 has numerously hit a snag over court cases.

Last week, the Court of Appeal lifted orders against enactment of the Act, issued by the High Court.

The initial case was filed by Busia Senator Okoiti Omtatah.