In a blow to the government, Kenya’s Court of Appeal has dismissed a request to suspend a previous order blocking the implementation of a contentious housing levy.
The government had sought permission to continue deducting the monthly levy from the salaries of Kenyan workers while awaiting the outcome of appeals challenging its introduction.
Last June, President William Ruto signed the Finance Act, which introduced a 1.5% housing levy payable each month by both employers and employees.
However, in November, the High Court declared the levy unconstitutional, citing its introduction without a proper legal framework and its exclusive imposition on salaried Kenyans. The court barred the government from enforcing the levy.
The government contends that the levy aims to facilitate the development of affordable housing programs for low-income earners. The recent ruling brings relief to many Kenyans, although the Court of Appeal is yet to make its final decision.
This development follows a recent decision by the appeals court to greenlight a controversial healthcare insurance levy, requiring individuals to contribute 2.75% of their monthly salaries to a social healthcare program.