Rights groups want Housing Levy to be declared unconstitutional

In their petition, the Kenya Human Rights Commission (KHRC), Transparency International Kenya, The Institute for Social Accountability, Inuka Kenya Ni Sisi! and Siasa Place argue that the levy unfairly targets salaried workers while the political elite are spared.

They also argue that the levy strips workers of scarce disposable income needed for essentials such as food, healthcare, and education.

They cited data from the Kenya National Bureau of Statistics (KNBS) 2024 economic performance report, which shows the levy’s regressive impact on socio-economic rights.

They faulted the Kenya Kwanza regime for turning the fund into a vehicle for political patronage for the 2027 General Election.

"Mr. William Ruto announced that 20 percent of houses, about 34,000 units from 170,000 ongoing projects, would be allocated to teachers after a meeting at State House. The deal was formalized through an MoU without Board approval, needs assessment, or public tendering," they said in a statement.

"Ruto further promised houses to Harambee Stars players during the CHAN football tournament."

The petitioners now want the High Court to suspend all deductions and declare the levy unconstitutional.

The High Court ruled in October 2024 that the controversial levy introduced in 2023, as part of measures to shore up public finances, was lawful.

The verdict okayed President Ruto's scheme, after a previous court ruling had declared it illegal in November 2023.

Salaried Kenyans pay 1.5 per cent of their monthly salaries to the Levy and a similar amount is matched by employers.

President Ruto has remained defiant that he will not bow to censures from critics, insisting that his plan to reform the national housing structure must be achieved.

He has defended the housing fund, saying it will construct homes for the poor, create employment and reduce public borrowing.