Court Puts Brakes on Ruto's Housing Levy Collection

President William Ruto's plan for affordable housing has suffered a significant setback as the Court of Appeal has rejected the government's request to continue collecting the housing levy.

This morning, a panel of three judges decided that it would not be in the public's best interest to grant the government's request. Justices Lydia Achode, John Mativo, and Mwaniki Gachoka voiced their belief that it would be more beneficial to await the resolution of the issues raised in the upcoming appeals. The government had asked for the suspension of the High Court's ruling, which deemed the fee illegal because of its discriminatory characteristics.

"Public interest, in our view, tilts favour of in not granting the stay or the suspension sought. Public interest tilts in favour of awaiting the determination of the issues raised in the intended appeals," Justices Lydia Achode, John Mativo and Mwaniki Gachoka said.

In a prior ruling, a panel of three judges from the High Court determined that the implementation of the Housing Levy, which was added to the Employment Act by Section 84 of the Finance Act, 2023, infringes upon various provisions of the Constitution. These include Articles 10, 201, 206, and 210. In line with the ruling, it is inequitable and unjust to impose the burden of supporting the national housing policy solely on individuals with high incomes.

The appellate court has brought up a crucial matter concerning the public's stake in halting a law that has been declared unconstitutional. The court does not find this to be justifiable, as it would undermine the legal strength of any actions carried out under the unconstitutional law if the appeal upholds its invalidity.