Sharp Daily
No Result
View All Result
Wednesday, April 1, 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

The liquidity advantage of Money Market Funds (MMFs)

March 31, 2026
Analysis

Public debt in kenya continues to rise past kSh 12 trillion

March 31, 2026
News

The impact of government borrowing on the Kenyan citizen

March 31, 2026
News

The role of foreign investors in local markets

March 31, 2026
News

Equity market performance and investor sentiment in emerging markets

March 31, 2026
Analysis

NCBA’s digital lending hits kSh 1.4 trillion as mobile banking drives growth

March 30, 2026

LATEST STORIES

The liquidity advantage of Money Market Funds (MMFs)

March 31, 2026

Kenya’s debt crisis deepens as Controller of Budget warns of Ksh 3.32 Trillion default risk

March 31, 2026

Public debt in kenya continues to rise past kSh 12 trillion

March 31, 2026

The impact of government borrowing on the Kenyan citizen

March 31, 2026

The role of foreign investors in local markets

March 31, 2026

Equity market performance and investor sentiment in emerging markets

March 31, 2026

NCBA’s digital lending hits kSh 1.4 trillion as mobile banking drives growth

March 30, 2026

High capital demands risk shutting out Crypto startups in Kenya, industry warns

March 30, 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