President William Ruto has suffered a big blow after the High Court declared the housing fund levy unconstitutional.
Issuing the orders was Judges Lawrence Mugambi, Christine Meoli and David Majanja who noted that the fund was discriminatory as it did not tax those in the informal sector but only those with a salary.
- KRA directs employers to backdate employees Housing Levy from July 2023
- President William Ruto reshuffles cabinet
“That levy against persons in formal employment with the exclusion of other non-formal without justification, discriminatory, irrational, arbitrary and in violation of Articles 27, 201 of the constitution,” said Justice Majanja
The orders now prevent the government from collecting any further deduction on salaried Kenyans towards the fund.
“An order is granted prohibiting the respondent from collecting/ charging or otherwise charging on Affordable Housing Act on the basis of section 84 of the Finance Act and all prayers on the consolidated petition not specifically granted,” said Justice Majanja.
The orders has been welcomed by Kenyans who have been feeling the heat on the already cost of living in the country.
