Kenya’s Court of Appeal has rejected a request to suspend an order preventing the government from enforcing a contentious housing levy. The government sought permission to continue deducting the levy from Kenyan workers’ salaries while appeals challenging its introduction were being heard.
Last June, President William Ruto approved the Finance Act, which included a 1.5% housing levy for both employers and employees. However, in November, the High Court deemed the levy unconstitutional due to its implementation without proper legal backing and its imposition solely on salaried individuals. Consequently, the government was prohibited from enforcing the levy.
The government argues that the levy will support the creation of affordable housing initiatives for low-income earners. While many Kenyans welcomed the High Court’s decision, the final ruling from the Court of Appeal is pending.
This development follows the recent approval by the appeals court of a controversial healthcare insurance levy, which mandates individuals to contribute 2.75% of their monthly salaries to a social healthcare scheme.
