Contractors to proceed with building despite housing levy ruling - state

"The Ministry urges for calmness in sector and encourages developers, to carry on."

In Summary
  • The CS added that Parliament has made an adequate appropriation to support the Affordable Housing Program.
  • She assured that there are adequate resources to support its implementation.
Land CS Alice wahome at a past event
Land CS Alice wahome at a past event
Image: FILE

The government has directed developers, contractors, suppliers and workers to proceed with the Housing project, days after a court ruling suspending the deduction of the housing levy on salaried Kenyans.

In a statement on Wednesday, Lands CS Alice Wahome said the Affordable Housing Programme is a key initiative of the government and will progress as planned.

"The attention of the Ministry has been drawn to reports that there is concern among contractors participating in the Affordable Housing Programme (AHP) about the viability of the project following the court ruling on the Housing Levy," she said.

"The Ministry urges for calmness in the sector and encourages the developers, contractors, suppliers and workers to carry on with their activities."

She said that the programme will ensure more than 120,000 young people are employed directly or indirectly on various sites, across the country and continue earning their livelihoods, as well as contributing to national development.

Wahome said Affordable Housing is a critical government programme anchored in Article 43 of the constitution which states that every person has the right to access adequate housing.

The CS added that Parliament has made an adequate appropriation to support the Affordable Housing Program.

She assured that there are adequate resources to support its implementation.

Wahome further stated that the government will appeal the ruling of the High Court.

On Friday last week, the Court of Appeal declined to suspend orders barring the state from deducting housing levies from Kenyans.

The appellate judges Lydia Achode, John Mativo and Mwaniki Gachoka said if they affirm the constitutional invalidity of the challenged laws, then some far-reaching decisions that will have been undertaken may not be reversed.

The judges in declining the state's application, said public interest lies in awaiting the determination of the appeal.

The government in persuading the court to suspend the High Court's decision said they risked being sued for breach of contracts signed in its effort to implement the affordable housing project.

But the appellate Judges said no single contract was placed in court by the state to support the claim.

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