The Court of Appeal has on Friday directed the government to cease Housing Levy deductions until the resolution of pending legal cases challenging the program.
The three-judge panel, comprising Justices Lydia Achode, John Mativo, and Mwaniki Gachoka, affirmed the suspension of the housing levy as initially pronounced by the High Court.
The court terminated the collection of charges after the government’s authorized collection period concluded on January 26.
The judges argued that deducting the funds without certainty regarding the final verdict would be unjust. They expressed concerns that if the levy was deemed unconstitutional, the process of refunding the collected funds could complicate the case.
The court also found fault with the Housing Levy’s selective targeting of individuals with payslips, deeming it an unfair practice. The judges cited the trial court’s determination that the levy lacked a legal framework upon introduction and that it discriminated against a specific group of Kenyans.
The judges emphasized the importance of awaiting the appellate court’s determination before taking any action, asserting that public interest favored withholding the suspension or stay orders until the issues raised in the intended appeals were resolved.
Additionally, the court ordered the expedited hearing of four consolidated appeals to address the raised concerns promptly. On January 3, 2024, the court of appeal maintained the status quo regarding the housing levy collection until a final decision could be reached.
The January 3 ruling followed a judgment by the High Court on November 28, 2023, which declared the housing levy unconstitutional due to discriminatory practices against Kenyans in formal employment. The High Court allowed the government a stay order until January 10, pending an appeal.
