Do Not Sabotage Housing Levy- Gachagua To High Court Judges

Deputy President Rigathi Gachagua on Tuesday, November 28 appealed to the Judiciary not to scuttle the Housing Levy, moments after it was nullified by the High Court.

Speaking at the 17th Annual Planners Convention in Diani, Kwale County, the second-in-command hinted at petitioners arguing against the housing levy attempting to sabotage the programme heavily championed by President William Ruto.

"The affordable housing is one of the most thoughtful strategies of our administration to dignify people. Shelter is a Constitutional requirement, we want Kenyans to have dignified shelter with proper sanitation.

An illustration of the Affordable Housing Programme by Boma Yangu Initiative under the National Housing Corporation. /BOMA YANGU KENYA

"I am aware that people have gone to court to try to suspend the housing levy and sabotage the housing program. Much as we respect the independence of the judiciary, I want to request our judges to exercise judicial discretion and not sabotage that programme," he pleaded.

The 3-judge bench that consists of Justices David Majanja, Christine Meoli and Lawrence Mugambi delivered the ruling which declared the Housing Levy introduced in the Finance Act as unconstitutional.

However, the government lawyers requested 45-day stay orders to make necessary amendments to the Housing Levy through the National Assembly in a bid to make it constitutional again.

Ahead of the ruling on the prayers anticipated to be made on Tuesday at 3.00 pm, DP Gachagua pleaded with the Judiciary to support the Kenya Kwanza housing levy which though imposed on salaried Kenyans, was enabling ordinary Kenyans to own homes.

"That program would dignify the people of Kenya. It is the desire of every Kenyan who lives in an urban centre to own a home one day," he added. 

While pleading with the court to grant the stay orders, Gachagua noted that the Affordable Housing Programme was granting jobs to Kenyans through the construction of the houses, in line with President William Ruto's ambitious target of 200,000 houses every year in his first term of office.

The 3-judge bench ruled that the Finance Act 2023 amendment to Section 84 of the Finance Act amending the Employment Act introducing the Housing Levy is unconstitutional, adding that the levy had lacked a comprehensive legal framework and is irrational.

"The levy against persons in formal employment to the exclusion of other non-formal income earners without justification is discriminatory, irrational, arbitrary and against the constitution," Justice David Majanja ruled.

The levy was accused of violating the principles of taxation and as contained in the Finance Act 2023 is discriminatory and unfair for making a distinction between the formal and informal sectors thus creating unequal and inequitable principles.