Last August, Kenya’s Ministry of Lands, Public Works, Housing and Urban Development issued a public notice announcing the implementation of mandatory contribution towards the Housing Fund proposed in the Finance Act, 2023 effective from 1 July 2023, Kenyan media reported.
The 2 August 2023 notice, which followed the decision of the Court of Appeal to lift the suspension of the conservatory orders barring the implementation of the Finance Act, 2023 indicated that “the levy is payable by the employee and employer at a rate of one point five per centum (1.5 per cent) of the employee's gross monthly salary by the employee, and one point five per centum of the employee's monthly gross salary by the employer, as outlined in the Finance Act 2023.”
On 28 November 2023, Kenya's High Court declared that the new levy to fund the affordable housing in the East African nation was unconstitutional, arguing that the Kenyan government had not adequately explained why the levy was imposed only on workers with employment in the formal sector, Reuters reported.
"The introduction of the housing levy... is discriminatory and irrational and arbitrary and is in violation... of the constitution," Judge David Majanja was quoted as announcing the verdict of the judges, who also approved the government lawyers' request for a 45-day stay of the order as they deliberate on whether to appeal or make changes to the law, addressing the concerns of the High Court judges.
In its January 26 ruling, Kenya’s Court of Appeal declined to extend the order that allowed the Kenyan government to continue collecting levies towards the affordable housing initiative, The East African reported.
On his part, President Ruto has continually insisted that the affordable housing project must be implemented “no matter what”.
In his February 19 address at the Joint National Executive Retreat and Parliamentary Group consultative meeting in the Kenyan town of Naivasha in Nakuru County, the Kenyan President said, "We will implement the housing program. I don't want to say by whatever means possible. I have just said we will implement it. We will, because it is what other progressive countries have done. It has worked. It is not an invention."
“Even those opposed to the housing program, it is not because they do not know it is the right thing,” he added.
According to Archbishop Muheria, Kenyans have other priority needs, which must be addressed before that of housing.
“Right now, Kenyans don't necessarily need houses; they need food and survival; can we first address that and then come back to housing?” he said on February 18.
