CourtCivil society groups have filed a fresh petition in the High Court seeking to suspend the mandatory housing levy, which they describe as illegal, unconstitutional and socially retrogressive.
In the petition, the Kenya Human Rights Commission, Transparency International Kenya, The Institute for Social Accountability, Inuka Kenya Ni Sisi! and Siasa Place contend that the levy introduced under the Affordable Housing Act, 2024, violates constitutional principles and fundamental rights.
At the centre of the dispute is the 1.5 per cent deduction on gross pay for salaried workers.
The petition indicates that the levy “unfairly targets salaried workers already weighed down by statutory deductions, while sparing the political elite and other powerful groups.”
It further argues that the scheme breaches several provisions of the Constitution, including Articles 10, 21, 27, 43, 201, 209 and 230.
The groups maintain that the levy has resulted in economic inefficiency, discrimination, lack of transparency and a setback to socio-economic rights.
Citing data from the Kenya National Bureau of Statistics (KNBS), the petition highlights what it terms a heavy toll on ordinary Kenyans.
“More than a third of Kenyans live below the poverty line, with food inflation and stagnant wages eroding household incomes,” the petition reads.
It adds that the levy “further strips workers of scarce disposable income needed for essentials such as food, healthcare and education.”
The filing also refers to the KNBS 2024 Economic Performance Report, which records a contraction of 0.7 per cent in the construction sector compared to 3 per cent growth in 2023.
According to the petition, the downturn reflects higher input costs, reduced private investment and lower household spending linked to the levy.
“Cement consumption fell 7.2 per cent to 8.5 million tonnes, the steepest drop in two decades, while steel imports dipped 12 per cent. Employment in construction shrank 4.2 per cent, contrary to claims that the levy is creating jobs,” the petition notes.
The petition further alleges that the levy has been used for political purposes.
It refers to President William Ruto’s recent pronouncements allocating 20 per cent of ongoing housing projects – about 34,000 units – to teachers, a move formalised through a memorandum of understanding said to lack Board approval, needs assessment or public tendering.
It also cites the President’s pledge of housing units to Harambee Stars players during the CHAN football tournament.
“These acts suggest misuse for patronage ahead of the 2027 elections,” the petition claims.
The petition asks the court to declare sections of the Affordable Housing Act, 2024, that introduced and operationalised the levy unconstitutional, null and void.
It seeks a permanent injunction restraining the government and its agencies from collecting, enforcing or implementing the levy.
The petition also requests orders of mandamus directing the National Treasury and Kenya Revenue Authority to refund, with interest, all amounts collected from workers and employers since the law came into effect.
It asks that this refund be made within 90 days of the court’s orders.
Additionally, the petition requests that the Treasury and KRA provide a full accounting of all funds collected under the levy, including utilisation, allocation and distribution, within 60 days.
It further seeks a structural interdict requiring a comprehensive human rights impact assessment, including public consultations, before any reintroduction of similar measures.
The Attorney General, the Cabinet Secretary for the National Treasury, the Cabinet Secretary for Lands and Housing, the Affordable Housing Board and the Kenya Revenue Authority are listed as the first to fifth respondents in the case.
The matter now awaits hearing and determination by the High Court.
