Editor's Review

The High Court on Tuesday declared the Housing Levy unconstitutional.

Nairobi Senator Edwin Sifuna has cautioned Kenyans against celebrating the High Court ruling declaring the Housing Levy unconstitutional.

In a statement via X on Tuesday, November 28, Sifuna said Kenyans should wait until the matter is cleared by the entire court hierarchy before they celebrate. 

“On Housing Levy, you should wait till the matter clears the entire hierarchy of Courts to celebrate. Mimi ndio nawashow,” Sifuna stated. 

This comes after a three-judge bench consisting of Justice Lawrence Mugambi, Justice Christine Meoli, and Justice David Majanja directed the government to stop collecting the housing levy from Kenyans. 

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File image of President William Ruto inspecting an affordable housing project. 

In their ruling, the judges found that the Finance Act 2023 amendment to Section 84 of the Finance Act amending the Employment Act introducing the Housing Levy is illegal.

"The levy lacks a comprehensive legal framework and is irrational. The levy violates the principles of taxation & as contained in the Finance Act 2023 is discriminatory and unfair for making a distinction between the formal & informal sectors thus creating unequal and inequitable principles and it is unconstitutional," the high court judges ruled.

The court also noted that the Housing Levy was opaque as it lacked a legal framework to support it.

Lawyer George Murungara has however requested the three judges to grant a stay for 45 days as the government looks for a way forward.