Don't celebrate yet! Sifuna tells Kenyans after Housing levy ruling

Nairobi Senator Edwin Sifuna has advised Kenyans not to celebrate yet, over Tuesday's ruling on Housing levy.

In a statement on X, Sifuna said Kenyans should wait until the matter has undergone the entire hierarchy of the courts system.

"On Housing Levy, you should wait till the matter clears the entire hierarchy of Courts to celebrate. Mimi ndio nawashow (I'm the one telling you)," he said.

The hierarchy of the courts provides room for the State to move to the Court of Appeal to challenge the decision and thereafter the Supreme Court.

A High Court in Nairobi on Tuesday declared the housing levy that was introduced by President William Ruto as unconstitutional.

The three-judge bench was appointed by Chief Justice Martha Koome.

It comprised of Justices Lawrence Mugambi, Christine Meoli and David Majanja.

The Bench ruled that the introduction of the levy was discriminatory since it imposed taxes on salaried Kenyans alone and excluded those working in the informal sector.

"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," Judge Majanja ruled.

The levy came as a result of the enactment of the Finance Act, 2023.

The government appointed the Kenya Revenue Authority (KRA) as the collection agent, and its collection was backdated to July 1, 2023.

Employers have been remitting their 1.5 per cent contribution alongside a similar rate for their employees as Housing levy.

Busia Senator Okiya Omtatah and six other entities had moved to court seeking to stop the implementation of the Finance Act, 2023.