Kenyan formal workers celebrate as the High Court nullified President William Ruto‘s housing levy. The three-judge-panel; Justices David Majanja, Lawrence Mugambi and Christine Meoli declared the levy in “violation of Article 10 of the constitution.” Justice Majanja criticized the mandated 1.5% salary tax for affordable housing as discriminatory. This contradicts national policy by excluding other taxpayers and informal workers.
“The taxes levied against persons in formal employment excluding non-formal earners to support a national policy. And without justification is discriminatory, irrational, and unconstitutional.”
Justice Majanja state in part.
Kenyans to Pay the Unconstitutional Housing Levy Until January
However, Kenyans will continue to bear the tax burden. The High Court issued stay orders, preventing the cancellation of the affordable housing levy for 45 days until January 10, 2024.
“The Court hereby issues an order staying the effect of this judgement until January 10, 2024. And pending filing of a formal application in the Court of Appeal.”
Justice Majanja expressed.
The delay is necessary for the government to align the housing levy in law. And to avoid lawsuits for not following the rules.
“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.”
The High Court ruled.
Babu Owino Asks Kenyans to Seek Compensation
Embakasi East MP Babu Owino celebrated the court nullifying the Housing Levy. He further urged Kenyans to demand the Government to refund any contributions.
“The Judiciary nullified the Housing Levy with clarity. I urge Kenyans to go to State House and get their Housing Levy compensated.”
He said.
Furthermore, the MP disagreed with the court’s decision staying orders. Babu Owino maintained that the order will still be unlawful next year.
“The postponement idea for the judgement to take effect in January is a wrong idea. Because the Housing Levy is as unconstitutional now as in January, according to the wisdom of The Judiciary.”
He stated.
BY BNN.