The Court of Appeal, on Friday January 26, issued an order directing the government to cease Housing Levy deductions until legal cases challenging the program are heard and resolved.
The three-judge bench, comprising Justices Lydia Achode, John Mativo, and Mwaniki Gachoka, ruled in alignment with the High Court’s decision, affirming the suspension of the housing levy.
The deduction of charges was officially terminated after the government’s specified collection window concluded on January 26.
The judges further argued that it would be unjust to proceed with deductions considering the uncertainty of the final verdict. They expressed concern that if the levy is later deemed unconstitutional, the process of refunding the collected funds would add complexity to the legal proceedings.
The court also took note that the Housing Levy disproportionately targeted a specific group of Kenyans—those with payslips—an approach deemed unjust by the judges. Quoting the court’s position, “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, the public interest lies in awaiting the determination of the appeal.”
Emphasizing the importance of public interest, the judges asserted that awaiting the outcome of the appeals is crucial, as granting a stay at this stage might complicate matters if the appellate court upholds the contested decision. The ruling highlighted the potential irreversibility of decisions made under the disputed laws.
Furthermore, the judges issued an order for the expedited hearing of four consolidated appeals, aiming to swiftly resolve the raised issues and provide clarity on the matters under contention.
