NAIROBI, Kenya – A three-judge bench has upheld the constitutionality of President William Ruto’s Housing Levy, dealing a blow to multiple petitions challenging its legality.
The ruling, delivered on Tuesday by Justices Olga Sewe, John Chigiti, and Josephine Mongare, affirmed that the controversial levy had been enacted in full compliance with the law.
The bench was handling six consolidated petitions, including one filed by 22 senators led by Busia Senator Okiya Omtatah, which sought to nullify key provisions of the Affordable Housing Act.
The petitioners argued that the levy was discriminatory and violated several sections of the Constitution, including Article 27, which guarantees equal protection and non-discrimination.
In their ruling, the judges disagreed with the petitioners’ claims, stating that the Housing Levy did not infringe on constitutional rights.
“It is our finding that Section 4 of the Affordable Housing Act is not discriminatory and does not violate Article 27 of the Constitution,” the court ruled.
The judges further noted that the levy was introduced following adequate public participation, a key legal requirement for any new legislation.
“It is clear that the National Assembly and Senate engaged relevant stakeholders in the public participation process. It cannot be denied that this process took place,” the bench said.
The petitioners had also taken issue with the appointment of the Commissioner General of the Kenya Revenue Authority (KRA) as the collector of the levy.
However, the court found that this arrangement did not violate any constitutional provisions.
The ruling solidifies the position of the Affordable Housing Act, which was signed into law by President Ruto in March 2023.
The law mandates a 1.5% deduction from employees’ gross monthly salaries to fund affordable housing initiatives. This levy applies to workers in both the formal and informal sectors.
The Housing Levy has been a contentious issue, facing resistance from various quarters, including labor unions and human rights defenders, who argue that it places an undue burden on Kenyans already grappling with the high cost of living.
Despite this, the court’s decision clears the way for the continued implementation of the levy, a cornerstone of President Ruto’s agenda to address the country’s housing deficit.
The ruling marks a significant victory for the Ruto administration, reinforcing the government’s efforts to push forward with its ambitious affordable housing plan.
However, it remains to be seen how the public will respond to the court’s decision, particularly in light of ongoing concerns over the financial strain on workers.
Chief Justice Martha Koome had appointed the three-judge bench to hear the petitions, signaling the high stakes involved in the case.
The ruling, delivered on Tuesday by Justices Olga Sewe, John Chigiti, and Josephine Mongare, affirmed that the controversial levy had been enacted in full compliance with the law.
The bench was handling six consolidated petitions, including one filed by 22 senators led by Busia Senator Okiya Omtatah, which sought to nullify key provisions of the Affordable Housing Act.
The petitioners argued that the levy was discriminatory and violated several sections of the Constitution, including Article 27, which guarantees equal protection and non-discrimination.
In their ruling, the judges disagreed with the petitioners’ claims, stating that the Housing Levy did not infringe on constitutional rights.
“It is our finding that Section 4 of the Affordable Housing Act is not discriminatory and does not violate Article 27 of the Constitution,” the court ruled.
The judges further noted that the levy was introduced following adequate public participation, a key legal requirement for any new legislation.
“It is clear that the National Assembly and Senate engaged relevant stakeholders in the public participation process. It cannot be denied that this process took place,” the bench said.
The petitioners had also taken issue with the appointment of the Commissioner General of the Kenya Revenue Authority (KRA) as the collector of the levy.
However, the court found that this arrangement did not violate any constitutional provisions.
The ruling solidifies the position of the Affordable Housing Act, which was signed into law by President Ruto in March 2023.
The law mandates a 1.5% deduction from employees’ gross monthly salaries to fund affordable housing initiatives. This levy applies to workers in both the formal and informal sectors.
The Housing Levy has been a contentious issue, facing resistance from various quarters, including labor unions and human rights defenders, who argue that it places an undue burden on Kenyans already grappling with the high cost of living.
Despite this, the court’s decision clears the way for the continued implementation of the levy, a cornerstone of President Ruto’s agenda to address the country’s housing deficit.
The ruling marks a significant victory for the Ruto administration, reinforcing the government’s efforts to push forward with its ambitious affordable housing plan.
However, it remains to be seen how the public will respond to the court’s decision, particularly in light of ongoing concerns over the financial strain on workers.
Chief Justice Martha Koome had appointed the three-judge bench to hear the petitions, signaling the high stakes involved in the case.
