The Kenya Human Rights Commission, alongside six other agencies, have moved to court to challenge the backdating of the Affordable Housing Levy, which was set at 1.5 per cent of gross salaries in the Finance Act 2023.
In the court documents filed before the Nairobi High Court and seen by Kenyans.co.ke, the petitioners want the conservatory orders issued against the collection of the backdated taxes.
They argued that the taxes deducted will not be refunded should the courts determine that certain provisions of the Finance Act are unconstitutional.
Other institutions that supported the suit included Katiba Institute, The Institute for Social Accountability (TISA), Transparency International Kenya, the International Commission of Jurist – Kenya, Siasa Place and Tribeless Youth.
"Accordingly, Petitioners seek a conservatory order suspending specific provisions whose implementation has an irreversible effect and cannot be refunded," read the Court documents in part.
"Giving the Act retrospective effect to July 1, 2023, as opposed to the date of Court of Appeal ruling lifting the conservatory orders is akin to punishing the petitioners for daring to question the measure in court and should be suspended," the activists added.
Apart from the Housing Fund, the team is also seeking to block the implementation of the increase of excise duty on imported glass bottles from 25 per cent to 35 per cent.
The petitioners also pleaded with the court to halt the implementation of taxes until the petition is heard and determined.
"Petitioners have an arguable case against these amendments and contend that the adverse impact on health, lives, and livelihoods is immediate and irreversible without conservatory orders," read the petition in part.
The petition by the seven civil groups was in reference to the move by the Ministry of Lands to backdate the 1.5 per cent Housing Fund to July 1. This directive is going to see employees double taxed for the Housing Fund this August.
Employers will also pay double, given that the tax was not implemented last month because of conservatory order with respect to a petition filed by Busia Senator Okiya Omtatah.
