Salaried Kenyans will continue to pay for affordable housing after the High Court granted stay orders restraining the quashing of the housing levy until January 10, 2024.
This is after a three-judge bench declared the levy unconstitutional, violating Article 10, 2 (a) of the Constitution.
The orders come after lawyer George Murugara asked for 45 days to comply with the court ruling.
“In those 45 days, I urge you to suspend the oppression of those particular findings in the judgement and any decree that may flow therefrom pending the filing of a formal application under the Mutunga Rules and the Court of Appeal Rules,” said Murugara.
Read: Finance Act: Court Declares Housing Levy Unconstitutional, Discriminatory
“The reason is that, first, we have to make the necessary adjustments to the government procedure of taxation so that no party/arm of government is sued for contempt.”
A three-judge bench composed of Justices David Majanja, Lawrence Mugambi and Christine Meoli also declared sections 84, 72 to 78 of the Finance Act null and void.
“We find that the introduction of the housing levy amendment to section 84 lacks a comprehensive legal framework in violation of Article 10 of the constitution, that levy against persons in formal employment without justification is discriminatory and irrational,” Justice Majanja said.
Employers have been remitting their 1.5 percent contribution alongside a similar rate for their employees.
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