Economy

Court Orders State to Stop Collecting Housing Levy in Case Against Finance Act, 2023

On Tuesday, November 28, 2023 – a panel of three judges declared certain parts of the Finance Act, 2023 including the Housing Levy, to be unconstitutional.

The verdict was handed down by Justices David Majanja, Christine Meoli, and Lawrence Mugambi.

They ordered President William Ruto’s administration to stop collecting the Housing Levy, stating it violated the Constitution.

Justice David Majanja stated that the levy, which only applied to formally employed individuals and excluded other non-formal income earners without justification, was discriminatory, irrational, arbitrary, and unconstitutional.

Chief Justice Martha Koome chose these judges on July 18, 2023, to hear and decide on petitions challenging the Finance Act, 2023.

This action was taken after Busia Senator Okiya Omtatah, the Law Society of Kenya, and others filed a lawsuit claiming the Finance Act was unconstitutional.

Justice Mugambi affirmed that the budget estimates were legally presented, noting that the Finance Bill fell under Article 114 of the Constitution and was legally introduced as a money bill. The Court concluded,

“We are satisfied that, applying the peel and substance test, the Finance Bill 2023 is a money bill; however, it contains matters that are extraneous to a money bill and are unconstitutional.”

Lawrence Baraza

Lawrence Baraza is a dynamic journalist currently overseeing content at Metropol TV Digital. With a keen focus on business news and analytics, Lawrence guides the platform in delivering insightful, data-driven content that empowers its audience to make informed decisions. Lawrence’s commitment to quality and his ability to anticipate market trends make him a key figure in the digital media landscape. His work continues to shape the way business news is consumed, making a significant impact in the field.

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