Economy

MPs Return to House to Debate Housing Levy

Kenyan lawmakers reconvened in the National Assembly to discuss the contentious Housing Levy, supported by recent amendments in the Housing Levy (Amendment) Bill, 2023.

This debate occurs while the Court of Appeal is yet to deliver its ruling on the levy’s constitutionality.

During a retreat in Naivasha attended by President William Ruto and his Cabinet, Majority Leader Kimani Ichungwa assured the President that the amended bill would soon come to fruition.

Ichung’wah said the Kenya Kwanza side is committed to ensuring the smooth passage of the new bill currently before the House.

Also Read: 270,000 Kenyans have registered for the affordable housing scheme

“Your Excellency I’m happy to report we began debate last week on Thursday, we were not able to conclude and hopefully we should be able to conclude that tomorrow (Tuesday) afternoon,” he said.

Housing Levy Unfairness and Lack of Public Participation

In a decision on November 28 last year, three judges of the High Court ruled that the introduction of the housing levy through amendment of the Employment Act by Section 84 of the Finance Act, 2023 lacks a comprehensive legal framework in violation of Articles 10, 201, 206 and 210 of the Constitution.

Thus, a panel of three judges—David Majanja, Christine Meoli, and Lawrence Mugambi deemed the imposition of the housing levy as unfair, discriminatory, and irrational.

They had an issue with informal income earners who according to them are excluded from supporting the national housing policy.

The judges affirmed the law should have undergone public participation before implementation.

The three-judge bench further ruled that allowing a statute found to be constitutionally illegal to remain in the law books pending an appeal would not serve the public interest.

“This is because should the Court hearing the appeal affirm the constitutional invalidity of the impugned laws, then all actions that will have been undertaken under the impugned sections of the law during the intervening period will be legally frail,” read the rulling from the trio.

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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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