Court of Appeal Directs Govt to Halt Housing Levy Deductions

Court of Appeal directed the government to cease deductions related to the Housing Levy on Friday until all pending lawsuits concerning the programme are resolved.

The ruling was delivered by a panel of three judges – Justices Lydia Achode, John Mativo, and Mwaniki Gachoka, who affirmed the High Court’s decision to suspend the housing levy.

The Court had previously found that the Housing Levy was implemented without a proper legal structure and was unfairly targeting a specific group of Kenyans.

According to the judges, it was in the public interest to wait for the appeal’s resolution.

“…the Housing Levy was introduced without a legal framework. It also held that the levy was targeting a section of Kenyans. In our view, public interest lies in awaiting the determination of the appeal,” reads the ruling in part.

They reasoned that if the stay is granted now and the appellate Court later upholds the contested decision, some significant actions taken under the disputed laws might be irreversible.

The judges said the public interest leans towards not granting the stay or suspension sought, but rather towards waiting for the resolution of the issues raised in the intended appeals.

On January 3, 2024, the court decided to maintain the current state of affairs regarding the levy’s collection until a decision is made on the aforementioned date.

“The decision on these consolidated applications will be announced on January 26, 2024. Until then, the status quo as of today will be preserved until the ruling is delivered.”