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Nairobi Business Monthly
Home»Latest News»Court halts collection of housing levy
Latest News

Court halts collection of housing levy

Court of Appeal has once again declined to extend order on collection of the controversial housing levy.
NBM CORRESPONDENTBy NBM CORRESPONDENT26th January 2024No Comments1 Min Read
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Pazuri, a master-planned residential and holiday home estate located in Vipingo, Kilifi County
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Court of Appeal has once again declined to extend order on collection of the controversial housing levy.

The Court of Appeal, on Friday January 26, barred the government from deducting housing levy from Kenyans.

A three-judge bench of the appellate court Justices Lydia Achode, John Mativo and Gatembu Kairu ruled that the levy, which has received widespread opposition from many Kenyans, remains suspended as declared by the High Court.

The Nairobi Law Monthly September Edition

“Public interest tilts in favour of awaiting the determination of the issues raised in the intended appeals,” they said.

The High Court judges noted that it is unfair to impose the levy especially on payslip Kenyans while excluding workers in the informal sector. Government will deduct 1.5% of payslip workers’ gross pay matched by another 1.5% by the employer, should the controversial levy be effected.

Government sought for extension to execute the levy at a time when Kenya has about 3.2 million people in formal employment and about 15.9 in the informal sector.

The Nairobi Law Monthly September Edition
Court of Appeal Formal sector High Court Housing levy Informal sector Justice John Mativo
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