Sifuna tells Kenyans not to celebrate over ruling on housing levy

By Peter Ochieng

Nairobi Senator Edwin Sifuna wants Kenyans to stop what he says are premature celebrations over a ruling on the housing levy.

On Tuesday, the housing levy being implemented by the Kenya Kwanza government under the Finance Act, 2023 was declared unconstitutional by the High Court.

In their ruling, Justices David Majanja, Christine Meoli and Lawrence Mugambi argued that by singling out the formal sector without justification, the law failed to conform to the principal of nondiscrimination.

The Judges found that the levy violates Article 10, 2 (a) of the constitution, which speaks on human dignity, equity, social justice, inclusiveness, equality, human rights, non-discrimination and protection of the marginalized.

"We find that the introduction of the housing levy amendment to section 84 lacks a comprehensive legal framework in violation of Article 10 of the constitution, that levy against persons in formal employment without justification is discriminatory and irrational," Judge Majanja read the judgement.

"An order is granted prohibiting the respondent from collecting, charging on otherwise the charge known as the affordable housing act," he added.

After the ruling, Kenyans who opposed the levy took to social media with celebratory messages.

However, Senator Sifuna warns that it is premature to celebrate. He said Kenyans should wait until the government which is likely to appeal the decision, exhausts the hierarchy of the Kenyan judicial system, which runs all the way to the Supreme Court.

“On Housing Levy, you should wait till the matter clears the entire hierarchy of Courts to celebrate. I am the one telling you,” he posted on X, formerly Twitter.

“We are already happy it has been termed unconstitutional, nothing in Ruto's Government is working Ruto is a failure,” said Captain Dominic Omondi in response to the Senator’s post.

The housing levy, a key pillar in the Finance Act, started being deducted from formally employed Kenyans in July, 2023.

The Kenya Revenue Authority (KRA) was mandated as the collecting agent. Employers have been remitting their 1.5 percent contribution, alongside a similar rate for their employees as well.

However, Kenyans will continue to pay for the levy until January 10, 2024, after judges issued a 45-day stay order to give room for implementation of the order making the levy unconstitutional.