Housing Levy: Githunguri MP Gathoni Wamuchomba commends High Court ruling

Githunguri Member of Parliament Gathoni Wamuchomba has criticized the Housing Levy, commending the recent High Court ruling that termed it unconstitutional and lacking clarity.

“I think that the Housing Levy is one of the most contentious issues that we have right now within the 2023 Finance Act,” Wamuchomba said.

The UDA-allied legislator also questioned what she calls the lack of a “rational explanation” from the government on imposing the levy solely on formal sector workers.

“The legal framework of the Housing Levy is still not clear to me. There are schemes of taking over prime land and handing that land to other players. That is unconstitutional, unprocedural and irregular, and some of us will pay for what we are doing in the future” she noted.

Speaking on Spice FM on Thursday, Wamuchomba further challenged President William Ruto's argument that higher taxes are a necessary to stabilize the government.

“What the government is economical suicide. You cannot overtax the micro-producer who is at the baseline of the pyramid. Widening of the tax base should be carefully done step by step not at once,” she said.

In addition, she commended Kiambu Governor Kimani Wamatangi's fight against illegal land acquisition.

“For Governor Wamatangi to say that he would not hand over his piece of land until he got it clear, I think he is doing what he is supposed to be doing. But unfortunately this is Kenya; you say No to such a request, you suffer the consequences,” stated Wamuchomba.

Kenya's High Court on Tuesday, November 27, declared the Housing Levy imposed as part the Finance Act 2023, unconstitutional.

A three-judge ruled that the court found the levy to have violated Article 10, 2 (a) of the Constitution.

In its ruling, the court said the government had not provided a rational explanation for why it had imposed the housing levy only on workers with employment in the formal sector.

"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," the judges noted in a ruling read by Justice David Majanja.