The housing levy proposed by the government has been declared unconstitutional by the high court.
During the ruling on petitions filed challenging the Finance Act 2023, Justice David Majanja ruled that the court has found the levy to have violated Article 10, 2(a) of the constitution.
“We find that the introduction of the housing levy amendment to section 84 lacks a comprehensive legal framework in violation of Article 10 of the constitution, that levy against persons in formal employment without justification is discriminatory and irrational.”Majanja read in his judgement on behalf of a three-judge bench.
The other two judges included Lawrence Mugambi and Christine Meoli.
Majanja further stated that sections 84, 72 to 78 of the Finance Act have also been termed null and void.
“An order is granted prohibiting the respondent from collecting, charging on otherwise the charge known as the affordable housing act,” he said.
The Levy started being deducted from formally employed Kenyans in July, with the Kenya Revenue Authority (KRA) mandated as the collecting agents.
Employers have been remitting their 1.5% contribution alongside a similar rate for their employees as well.
