The High Court has ruled that the Housing Levy, a central component of the Finance Act 2023, was properly enacted.
The ruling was delivered Tuesday October 22, 2024 by Justice Olga Sewe, John Chigiti and Josephine Mong’are.
The judges said that there was adequate public participation in implementing the Act.
Six petitions challenging the housing levy among other provisions of the Affordable Housing Act were filed but later consolidated.
Among them is one filed by 22 senators led by Busia Senator Okiya Omtatah and seven other human rights defenders.
The ruling is a lifeline for President William Ruto, as the state aims to construct 250,000 housing units annually.
The units comprise bed-sitters (studios), two and three-bedroom apartments for affordable housing, and one, two, and three-bedroom apartments for social housing, targeting residents of slum areas.
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Affordable Housing Levy Contributions
Kenyan are contributing approximately Ksh.5.5 billion monthly towards the housing levy, as disclosed by Housing Principal Secretary Charles Hinga.
This figure represents an average, suggesting that the actual amount may be higher, particularly since the levy predominantly targets salaried individuals.
In May, Hinga informed the National Assembly’s Committee on Housing, Urban Planning, and Public Works that by April of this year, the State Department for Housing had amassed Ksh.34.72 billion from Kenyans.
However, only Ksh.6.93 billion has been utilized for the development of affordable housing units since the enactment of the Affordable Housing Fund Act on March 19, 2024.
“On average, we are collecting Ksh.5.5 billion every month from the affordable housing levy,” said PS Hinga when he appeared before the National Assembly’s Committee on Housing, Urban Planning and Public Works.
