Court Declines to Suspend Housing Levy 

The High Court Thursday declined to issue orders stopping the imposition of the Affordable Housing Levy. 

The levy is rated at 1.5% as provided in the Act.

Justice Olga Sewe, John Chigiti and Josephine Mong’are considered among other issues arguments advanced by the State that it would be difficult to reverse the effects if the orders were granted moreso because contracts have already been signed and infrastructure projects initiated.

“We have no doubt that the affordable housing levy is a matter that has generated a lot of public interest. We are also convinced that the public interest tilts in favour of not granting the order but in prioritizing these petitions for hearing and determination,” they said.

This was in a case filed by Magare Gikenyi.

The petitioner had filed the case in March 2024, challenging the Affordable Housing Act, 2024, terming it as discriminatory towards corporates.

Gikenyi had argued before the court that the Act in section 48(2) outlawed corporations from owning a house despite the entities paying tax and contributing to the Kenyan economy.

The petitioner termed the move as discriminatory and against the spirit of the Constitution and other laws.

“We are convinced that the public interest sits in the favour of not granting the orders but prioritise this petition and hearing,” the 3-judge bench ruled.

“The final orders are that we issue that the application dated April 2 and April 8, be and hereby dismissed for lack of merit.”

With the prayers to suspend the housing levy pending the determination of the case thrown out, Kenyans will continue being subjected to a mandatory 1.5 per cent salary deduction.

Apart from citing corporate discrimination, Gikenyi had argued that not all Kenyans should be subjected to the mandatory salary deduction to go towards the Housing Fund kitty as not everyone wanted a house.

The petitioner who is a doctor by profession further argued Kenyans did not have a say on the location of the building, its style and architectural design as well as mode of mortgage payment.

Gikenyi had listed Cabinet Secretaries for Land and National Treasury as well as the Attorney General as respondents in the petition.