The High Court is gearing up to issue directives in a case where 22 senators, spearheaded by Busia’s Okiya Omtatah, are contesting the enforcement of the new Affordable Housing Act.
Justice Chacha Mwita had previously instructed Omtatah and the petitioners to serve their documents to the respondents by April 10. The respondents, including the National Assembly, Senate, Attorney General, Ministry of Lands, Kenya Revenue Authority, among others, are all part of the legal battle.
The senators, along with seven human rights advocates, are particularly concerned about a section of the new Act that proposes the appointment of the Commissioner General of KRA as the collector of the affordable housing levy, as well as sections 4 and 5 of the Act, which mandate the levy.
“The Commissioner General is not the KRA. It is the Authority, not its Commissioner-General, that, under Section 5 of the KRA Act, is given the mandate to collect and account for revenues in accordance with specified laws,” the documents state.
On March 19, President William Ruto signed the Affordable Housing Bill 2023 into law, thereby reinstating the controversial housing levy deductions. This move also incorporates workers in the informal sector, aligning with a prior High Court ruling that deemed it unconstitutional last year.
Per the new law, Kenyans will now face a deduction of 1.5 per cent from their gross monthly pay.
The petitioners are urging the court to nullify the imposition of the Affordable Housing Levy at the rate of 1.5 per cent as outlined in the Affordable Housing Act, 2024.
Furthermore, they seek to have the matter referred to CJ Martha Koome, arguing that it raises significant legal questions warranting consideration by an odd number of judges.
