President William Ruto on Tuesday revealed that the government is planning to make readjustments to its policies after the High Court declared certain provisions of the Finance Act, 2023 including the Housing Levy unconstitutional.
Speaking during the 5th Congress of the International Trade Union Confederation- Africa held in Nairobi, Ruto stated that the government would respect the court's ruling but maintained the housing program is important for the country's long-term aspirations including job creation.
“I know the court has said we should go and readjust the law to make it aligned appropriately, that, we are going to do,” Ruto noted in his statement.
While addressing the delegation, President Ruto refuted claims that the housing project was mainly aimed at benefitting the government and not Kenyans as intended.
“I want to report to you, in the last 8 months we have created 120,000 jobs from our housing plan,” Ruto stated.
The Head of State further noted the government was aiming to improve digitalization through the creation of Information Communication and Technology (ICT) hubs, noting that there was a bill in Parliament being passed to implement the same.
According to the President, the Kenyan government had also reached a bilateral agreement with the German government to allow more Kenyans to work in the European country.
This came after the High Court on Tuesday declared some parts of the controversial Finance Act, 2023 unconstitutional.
In line with the ruling, a 3-judge bench comprising Justices David Majanja, Christine Meoli, and Lawrence Mugambi ordered the government to cease effecting Housing Levy deductions holding it contravenes the Constitution.
"The levy against persons in formal employment to the exclusion of other non-formal income earners without justification is discriminatory, irrational, arbitrary, and against the constitution," Justice David Majanja ruled.
However, hours later, the same court granted stay orders requested by the government, allowing the government to retain Housing Levy funds for 45 days.
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