The government has been granted a 45-day conservatory order by a three-judge bench in relation to the Housing Levy, which was declared unconstitutional on Tuesday.
The judges granted the government a 45-day period, extending the conservatory orders until January 10, 2024.
Justice David Majanja issued an order of stay pending a conservatory application in the Court of Appeal, which will remain in effect until January 10, 2024.
The government, represented by lawyer George Murugara, confirmed their intention to appeal the Housing Levy verdict at the Court of Appeal.
The government lawyers sought a 45-day window to regularize the Housing Levy by presenting it to Parliament and subsequently passing it into law.
“These are operations that are going to be affected including what date is the effective cessation of the collection of the levy. Is it from today or the time the Act was enacted? Tomorrow, there will be an avalanche of Kenyans going to KRA asking for a refund. They’re not given their money because there is a procedure that has to be followed. They will be in court with contempt applications, so this is a real danger facing everyone in government who must comply with this order,” the lawyer stated.
“This is the reason why there must be a refund, lest there may be a refund, it cannot be tomorrow. It has to be within a given period of time after systems are adjusted, advice is given and appropriate measures are given. I don’t agree with the submission given that the law cannot be rectified, that we leave to Parliament. If it has its means to pass it, well and good,” he added.
The government warned judges of severe consequences if they declined a plea, arguing that the 45-day window would not negate the earlier nullification ruling.