Sharp Daily
No Result
View All Result
Thursday, December 4, 2025
  • 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

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

December 2, 2025

Teachers’ healthcare revolution: understanding the transition to SHA’s comprehensive medical cover.

December 1, 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 journalist with major interests in covering tech, corporates, startups and business news. When he's not writing, you can find him gaming, watching football or sipping a nice cup of tea. Send tips via bireri@thesharpdaily.com

Related Posts

News

Kenya’s push to tap local investor wealth

December 4, 2025
Economy

Kenya sells 15% Safaricom stake to Vodafone for $1.6 billion

December 4, 2025
News

How “save- invest- spend” rules transform children’s money mindset

December 4, 2025
News

From banking halls to banking apps: A youth driven shift

December 3, 2025
Analysis

In duplum rule Kenya: slain lawyer Mathew Kyalo Mbobu wins posthumous victory against Sh69M predatory loan demand.

December 3, 2025
News

Reframing Savings and Investments for Low Income Kenyans

December 3, 2025

LATEST STORIES

Kenya’s push to tap local investor wealth

December 4, 2025

Kenya sells 15% Safaricom stake to Vodafone for $1.6 billion

December 4, 2025

Christmas sales 2025

December 4, 2025

Kenya struggles to rein in recurrent spending-World Bank warns

December 4, 2025

How “save- invest- spend” rules transform children’s money mindset

December 4, 2025

Life Cover Embedded in Retirement Benefits Schemes in Kenya

December 4, 2025

The global economy in 2025

December 3, 2025

USD exchange rates in east africa

December 3, 2025
  • 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