HomeKenyaEconomyCourt of Appeal keeps the 1.5% housing levy. What the ruling means...

Court of Appeal keeps the 1.5% housing levy. What the ruling means for your payslip

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The Court of Appeal has upheld the Affordable Housing Act 2024, including the 1.5% housing levy taken from every salaried worker’s gross pay.

On Friday, 25 September, a five-judge bench dismissed 42 appeals that had been joined together. The judges were Wanjiru Karanja, Patrick Kiage, Aggrey Muchelule, Weldon Korir and George Odunga. “Having considered the submissions made, we find no merit in this appeal, which we hereby dismiss,” they said.

What the challengers argued

The appeals were led by Busia Senator Okiya Omtatah and Dr Magare Gikenyi, among others. They argued that the law breached property rights, undermined devolution, lacked proper public participation, and unfairly targeted salaried workers while leaving out people in the informal sector.

What the court said

  • “Taxation enacted through Parliament for a clear public purpose does not violate private property rights,” the judges ruled.
  • Public participation was adequate.
  • Any public land used for the programme must first be approved by the National Land Commission. “Any allocation of public land without the approval of the NLC will, accordingly, be unlawful,” the court said.

What it means for you

  • Nothing changes on your payslip. The 1.5% deduction continues, and your employer keeps paying a matching 1.5%. KRA collects it.
  • Kenyans.co.ke reports the levy brings in about Sh6 billion a month.
  • The reports KNN reviewed do not say whether the petitioners will go to the Supreme Court.
  • The programme includes the Kibera Soweto East Zone B houses. Our guide to Zone B explains who gets priority and how to register.

Sources: The Star, Kenyans.co.ke, Eastleigh Voice.

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