- The appellate Judges 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.
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The government has suffered a major setback after the Court of Appeal declined to suspend orders barring the state from deducting housing levy from Kenyans.
The housing levy therefore remains suspended as declared by the High Court.
This is a major win for Kenyans.
The appellate Judges 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.
They said it is in the public interest that the appeals first be heard.
The Attorney General and the National Treasury moved to the appellate court after the High Court found the deductions to be unconstitutional.
They told the court that the suspension would lead to a massive budgetary crisis and confusion in the country.
They sought orders halting the implementation of the High Court judgement that rendered the housing levy unconstitutional pending the determination of their appeal.
But Justices Lydia Achode, John Mativo and Gatembu Kairu in declining the state's application, said public interest lies in awaiting the determination of the appeal.
"This is because if the stay sought is granted at the stage, should we affirm the challenged decision, then some far-reaching decisions that will have been undertaken pursuant to the challenged laws may not be reversible," they said.
"Public interest in our view tilts favor of in not granting the stay or the suspension sought," they added.
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.
"In the absence of valid evidence to support such a grave assertion, the argument that the appeals will be rendered useless if stay not granted on this ground fails," said the judges.
The state had so said some government departments may shut down and jobs would be lost.