- On March 19, President William Ruto signed into law the Affordable Housing Bill 2023, paving the way for the reinstatement of the contentious housing levy deductions.
- The new legislation ropes workers in the informal sector for the regulations to be in agreement with the High Court ruling that rendered it unconstitutional last year.
Image: FILE
The Affordable Housing Act is facing a new hurdle after 22 Senators led by Busia’s Okiya Omtatah took the battle to court seeking to quash it in its entirety.
The senators and seven other human rights defenders have specifically taken issue with a section of the new Act that seeks to appoint the Commissioner General of KRA as the collector of the affordable housing levy, and sections 4 and 5 of the Act, which impose the levy.
The petitioners argue that the Commissioner-General of the Kenya Revenue Authority cannot be the collector of Affordable Housing Levy as his responsibilities are strictly restricted to the affairs of the Authority.
“The Commissioner General is not the KRA. It is the Authority, not its Commissioner-General, that, under Section 5 of the KRA Act, is given the mandate to collect and account for revenues in accordance with specified laws,” reads the documents.
On March 19, President William Ruto signed into law the Affordable Housing Bill 2023, paving the way for the reinstatement of the contentious housing levy deductions.
The new legislation ropes workers in the informal sector for the regulations to be in agreement with the High Court ruling that rendered it unconstitutional last year.
Under the new law, Kenyans will now be deducted 1.5 per cent of their gross monthly pay.
The petitioners have asked the court to quash the imposition of the Affordable Housing Levy at the rate of 1.5% as provided in the Affordable Housing Act, of 2024.
Also sought is an order suspending Section 2(1) of the Affordable Housing Act, 2024, to the extent that it appoints the Commissioner General of the KRA as the collector of the affordable housing levy, and sections 4 and 5 of the Act, which impose the levy.
Omtatah also seeks to prohibit the National Assembly and 11 others from continuing to implement section 60 of the Affordable Housing Act, 2024 to the extent that it attempts to retroactively address issues previously declared unconstitutional by the High Court.
The petitioners further want the matter referred to CJ Martha Kooke saying the matter raises substantial questions of law that ought to be heard by an uneven number of judges.
They have also asked the court to prohibit the National Land Commission, the State Department for Housing and Urban Development, and any other State organ or agency from approving the use of or using public land for the construction of houses to be privatised under the Affordable Housing Act, 2024.
According to the court documents, the petitioners contend that money cannot be lawfully raised from the public before the Affordable Housing Fund is fully operational.
"Since the Fund’s Board has to be operational before the Board can “approve estimates of revenue and expenditure of the Fund for each financial year,” there was no basis for beginning to raise funds at the signing of the Affordable Housing Act, 2024, "read the documents in part.
Omtatah maintains that any collection of funds must wait for the Board to be operationalised.
Justice Chacha Mwita directed the pleadings be served on the respondents immediately as he is set to issue further directions on April 10.