The High Court has upheld the constitutionality of the 1.5 percent Affordable Housing levy imposed on workers, rejecting allegations of double taxation and discrimination.
In a decision delivered by a three-judge bench consisting of Justices Olga Sewe, John Chigiti, and Josephine Mong’are, the court dismissed a petition led by Busia Senator Okiya Omtatah, activist Eliud Matindi, and the Katiba Institute.
Justice Mong’are stated, “It is our finding that the levy is properly in place and in accordance with the constitution.”
The court clarified that the National Assembly has the authority to determine how taxes are calculated, imposed, and collected under Article 95 of the Constitution.
Mong’are further affirmed, “Section 4 of the Housing Levy Act is not unconstitutional.”
The judges confirmed that Parliament conducted adequate public participation before implementing the levy, stating, “We are satisfied that public participation occurred before the Affordable Housing levy was enacted.”
Addressing concerns of discrimination, the court ruled that the levy does not unfairly burden Kenyans. Justice Chigiti emphasized that the Act serves to establish a legal framework for Affordable Housing programs.
“The Act aims to promote and uphold the constitutional duty of the state to provide housing,” he explained, noting that Sections 3 and 4 do not violate Article 43(1) of the constitution, which guarantees the right to housing.
