Sharp Daily
No Result
View All Result
Friday, April 24, 2026
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home News

Setback for Ruto: Housing levy declared unconstitutional

Brian Murimi by Brian Murimi
November 28, 2023
in News
Reading Time: 1 min read

Kenya’s High Court ruled Tuesday that the government’s new housing levy is unconstitutional, barring the state from collecting the planned over 60 billion in annual revenue.

In a unanimous verdict, the three-judge bench found that the levy inserted into the Finance Act 2023 “lacks a comprehensive legal framework and is irrational,” violating taxation principles and unlawfully distinguishing between Kenya’s formal and informal sectors.

“We find that the introduction of the housing levy amendment to Section 84 lacks a comprehensive legal framework in violation of the Constitution,” the judges said in the ruling.

The levy was established to raise funding for a new affordable housing program, with projected collections of KES 63.2 billion in 2023-2024. Justice Majanja noted that the Kenya Revenue Authority is not legally empowered to collect the levy.

RELATEDPOSTS

Tanzania’s independence day 2025: a nation mourns as celebrations give way to crisis

December 9, 2025

Kenya’s middle-income jobs grow: 1.5 million now earn above Sh50,000 monthly

December 5, 2025

“Housing levy is not one of the taxes KRA is empowered to collect,” Majanja said.

While the court found the rushed public participation process was likely sufficient, the lack of a legal framework for the levy and associated housing fund violated constitutional principles.

“Our understanding of 206(1) is that money earmarked and collected for a purpose must be paid over into a public fund established for that purpose by legislation. The housing levy cannot be paid over to a fund unless there is a legislative provision connecting the levy to the fund. This does not exist,” Majanja said.

Justice Meoli concurred that loopholes in the legislation rendered the levy unconstitutional despite its worthy policy aims, while Justice Mugambi noted the finance bill violates rules barring money bills from containing extraneous matters.

The ruling represents a major setback for the Kenya Kwanza administration, which touted the levy and accompanying housing program as a top policy achievement.

Losing billions in projected annual funding could slow plans to construct 200,000 affordable homes every year.

Previous Post

MPost relocates headquarters from Nairobi to Kigali

Next Post

Power struggle: Kenyan manufacturers grapple with soaring electricity costs

Brian Murimi

Brian Murimi

Brian Murimi is a communications and advocacy professional with a focus on innovation, policy and continental development in Africa. A former journalist, he now works at the intersection of knowledge, strategy, and pan-African institution building.

Related Posts

News

Land acquisition for first time owners

April 24, 2026
News

Trends in luxury real estate

April 24, 2026
News

Kenya’s Digital Tax Shift

April 24, 2026
News

KRA targets mobile money loopholes as informal sector tax crackdown intensifies

April 24, 2026
News

Liquidity-Led Gains or Fundamental Recovery? What Q1’2026 Reveals About the NSE

April 24, 2026
News

The role of external debt in economic development and financial stability

April 24, 2026

LATEST STORIES

How a regional refinery could reshape East Africa’s trade deficit

April 24, 2026

Land acquisition for first time owners

April 24, 2026

Trends in luxury real estate

April 24, 2026

NSSF remittances and the case for Tier II planning

April 24, 2026

Why Employers Should Join the Cytonn Umbrella Retirement Benefits Scheme

April 24, 2026

Strategic deleveraging is the reset CIC Group needed

April 24, 2026

Kenya’s Digital Tax Shift

April 24, 2026

Michael debut signals strong market demand for music biopics despite industry pressures

April 24, 2026
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024