National Assembly files notice of appeal against housing levy ruling

The National Assembly has filed a notice to appeal the court ruling that declared the controversial housing levy as unconstitutional.

The notice, jointly filed with the Speaker of the House, expressed dissatisfaction with the Court of Appeal judgement, hence indicating intent to challenge it before the Supreme Court.

“Take notice that the National Assembly and the Speaker of the National Assembly, the 1st and 2nd Applicants in Nairobi Court of Appeal Civil Application No. E577 of 2023 (the "Appellants”), being dissatisfied with the decision of the Court of Appeal (Hon. L. Achode, Hon. J. Mativo and Hon. M. Gachoka) delivered at Nairobi 26th January, 2024, intend to appeal to the Supreme Court of Kenya against the whole of the said ruling,” read the notice.

In the Friday ruling, Appellate Court judges Lydia Achode, John Mativo and Paul Gachoka cited public interest in the matter, underscoring the High Court ruling that the housing levy was introduced without a legal framework.

“The trial court held that the housing levy was introduced without a legal framework. It also held that the levy was targeting a section of Kenyans. In our view, public interest lies in awaiting the determination of the appeal,” read the court of ruling.

“This is because if the stay sought is granted at this stage, should the appellate Court affirm the impugned decision, then some far-reaching decisions that will have been undertaken pursuant to the impugned laws may not be reversible. Public interest tilts in favour awaiting the determination of the issues raised in the intended appeals.”

In November last year, the High Court judge ruled that  petitions filed challenging the Finance Act 2023 violated Article 10, 2 (a) of the constitution.

"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 David Majanja read in his judgement on behalf of a three-judge bench.

The other two judges included Lawrence Mugambi and Christine Meoli.

The levy, a cardinal pillar in the Finance Act, started being deducted from formally employed Kenyans in July, with the Kenya Revenue Authority (KRA) mandated as the collecting agent.

Employers have been remitting their 1.5 percent contribution alongside a similar rate for their employees as well.

The government had cited that the unwelcome deduction would enable it achieve their ambitious plan of constructing affordable homes for low-earning Kenyans.