President William Ruto has continued to defend the housing levy saying it will benefit many Kenyans.
Speaking on Sunday during Salvation Army’s 100th anniversary celebrations in Nairobi, Ruto said the project will also provide decent houses for Kenyans.
He added that Kenyans who are able and employed have a responsibility to contribute to the Affordable Housing Project.
“Many people are asking why I disturb them with the Housing issue, asking who told you we need houses. I do not want to be asked by God why I did not provide housing and yet I was in a position to do so,” he said.
The President said the government’s aim to collect the Housing levy is to create employment for the majority of Kenyans.
“We have many Kenyans living in slums and it is our responsibility, for those with jobs to contribute to the levy to provide shelter for those who do not have. We want to have a programme that will employ young people through housing, export labour, digital jobs and manufacturing to create employment for our young people.”
On January 26, the Court of Appeal dismissed the government’s applications that sought to suspend a November 28, 2023, High Court ruling that the Housing levy was unconstitutional.
“In our view, the public interest lies in awaiting the determination of the appeal. This is because if the stay sought is granted at this stage, should the appellate Court affirm the impugned decision, then some far-reaching decisions that will have been undertaken pursuant to the impugned laws may not be reversible,” the judges explained.
The court, therefore, declined to allow the government to continue collecting the 1.5 per cent levy meant to fund the affordable housing project.
Kenyans and some leaders have since opposed the move to deduct the levy saying they are already burdened with other taxes.
Attorney General Justin Muturi issued an advisory to the Kenya Revenue Authority (KRA) against making the collections.
KRA director general Humphrey Wattanga had in a letter dated February 12 sought the government’s legal adviser’s opinion on the issue following the Court of Appeal ruling.
"The upshot of this is that there is no legal basis on which the housing levy as provided in section 84 of the Finance Act can be implemented. Our considered opinion is that as of the date of delivery of the ruling of the Court of Appeal on January 26, 2024, there is no legal provision that enables the collection and administration of the Housing Levy," Muturi said.
