Court Declines to Suspend Housing Levy

A file photo of the Kenya Supreme Court Proceedings
A file photo of the Kenya Supreme Court Proceedings
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Judiciary

A three-judge bench on Thursday, July 11, declined to suspend the Housing Levy pending the hearing and determination of a case filed by Magare Gikenyi. 

The petitioner had filed the case in March 2024, challenging the Affordable Housing Act, 2024, terming it as discriminatory towards corporates. 

Justices John Chigiti, Olga Sewe, and Josephine Mong'are, while disagreeing with the petitioner's prayers directed the case be heard and determined on a priority basis.

Gikenyi had argued before the court that the Act in section 48(2) outlawed corporations from owning a house despite the entities paying tax and contributing to the Kenyan economy. 

President William Ruto assents the Affordable Housing Bill into law at State House on March 19, 2024.
President William Ruto assents the Affordable Housing Bill into law at State House on March 19, 2024.
PCS

The petitioner termed the move as discriminatory and against the spirit of the Constitution and other laws.

"We are convinced that the public interest sits in the favour of not granting the orders but prioritise this petition and hearing," the 3-judge bench ruled.

"The final orders are that we issue are that the application dated April 2 and April 8, be and hereby dismissed for lack of merit."

With the prayers to suspend the housing levy pending the determination of the case thrown out, Kenyans will continue being subjected to a mandatory 1.5 per cent salary deduction.

Apart from citing corporate discrimination, Gikenyi had argued that not all Kenyans should be subjected to the mandatory salary deduction to go towards the Housing Fund kitty as not everyone wanted a house.

The petitioner who is a doctor by profession further argued Kenyans did not have a say on the location of the building, its style and architectural design as well as mode of mortgage payment.

Gikenyi had listed Cabinet Secretaries for Lands and National Treasury as well as the Attorney General as respondents in the petition.

Since the Act emanated from Parliament, the National Assembly and the Senate were also listed as respondents.

Ruto
President William Ruto laying a stone at an affordable housing project in Laikipia, April 13.
PCS