National Assembly to appeal High Court judgement on housing levy

Kenya’s National Assembly has revealed plans to challenge a High Court ruling that declared the affordable housing levy unconstitutional at the Court of Appeal.

In a notice released on Friday, December 1, the National Assembly noted that it was not satisfied with the ruling that declared the housing levy as unconstitutional.

“Take notice that the National Assembly and Speaker of the National Assembly, the 3rd and 4th respondents being dissatisfied with part of the judgement of the High Court (Hon. Justice D. Majanja, Hon. Lady Justice C. Meoli and Hon. Justice L. N. Mugambi) delivered at Nairobi on the 28th day of November, 2023, intends to appeal to the Court of Appeal against part of the decision,” read part of the notice.

Justice David Majanja (pictured) led the three-bench court sitting on the Finance Act 2023 matter. PHOTO/TV47

During the court ruling, the respondents were prohibited from charging and collecting the levy.

“An order is hereby granted prohibiting the Respondents from collecting, charging or otherwise, the charge known as affordable housing levy on the basis of Section 84 of the Finance Act, 2023,” read part of the court ruling.

However, shortly after the ruling, the High Court issued stay orders, allowing the government to continue collecting the housing levy until January 10, 2024.

The court’s issuance of stay orders cut short, the celebrations that had broken out in different parts of the country as Kenyans were celebrating the halting of housing levy deductions from their salaries.

Initially, the High Court had declared the Levy imposed on those in formal employment unconstitutional as it violates Article 10 of the Constitution.

First time gathering of newly elected Parliamentarians at the National Assembly after the 2022 general election. PHOTO/COURTESY

The stay orders were issued after the respondents represented by lawyer George Murugara requested for 45 days to abide by the court’s decision.

“In those 45 days, I urge you to suspend the oppression of those particular findings in the judgement and any decree that may flow therefrom pending the filing of a formal application under the Mutunga Rules and the Court of Appeal Rules,” Murugara told court.

“The reason is that, first, we have to make the necessary adjustments to the government procedure of taxation so that no party/arm of government is sued for contempt,” he added.