Sharp Daily
No Result
View All Result
Thursday, June 11, 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

Simba Corp bets on Kenya’s EV future with Sh1 billion assembly line investment

June 11, 2026
Economy

Treasury faces Sh47.9 billion revenue gap as tax relief measures complicate Kenya’s Sh4.8 trillion budget

June 11, 2026
News

The significance of yield curves in economic and investment analysis

June 11, 2026
News

Kenya’s interest rate hold: when geopolitics reshapes monetary policy

June 10, 2026
Analysis

CMA tightens governance oversight in kakuzi case

June 10, 2026
Analysis

Investor appetite for treasury bills surges as demand jumps 228% ahead of CBK rate decision

June 10, 2026

LATEST STORIES

Kenya’s EV assembly ambition gets a Sh1 Billion boost from Simba Corp’s AVA

June 11, 2026

Simba Corp bets on Kenya’s EV future with Sh1 billion assembly line investment

June 11, 2026

Treasury faces Sh47.9 billion revenue gap as tax relief measures complicate Kenya’s Sh4.8 trillion budget

June 11, 2026

The significance of yield curves in economic and investment analysis

June 11, 2026

Kenya’s interest rate hold: when geopolitics reshapes monetary policy

June 10, 2026

CMA tightens governance oversight in kakuzi case

June 10, 2026

Investor appetite for treasury bills surges as demand jumps 228% ahead of CBK rate decision

June 10, 2026

CBK holds benchmark rate at 8.75% for the second consecutive time

June 10, 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