In Courts: Directions on housing levy case by Omtatah to be issued

Wheels of Justice: Court cases lined up for today.

In Summary
  • Under this new law, Kenyans will now be deducted 1.5 percent of their gross monthly pay.
  • But The petitioners have asked the court to quash imposition of the Affordable Housing Levy at the rate of 1.5% as provided in the Affordable Housing Act, 2024.
In courts today
In courts today
Image: The Star

The High Court is set to issue directions in a case in which 22 senators led by Busia's Okiya Omtatah are challenging the implementation of the new Affordable Housing Act.

Justice Chacha Mwita had directed Omtatah and the petitioners to serve their papers on the respondents in the case by April 10. The respondents are listed as National Assembly, Senate, Attorney General, Ministry of Lands, Kenya Revenue Authority and others.

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," the documents read.

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 in workers in the informal sector for the regulations to be in agreement with the High Court ruling that rendered it unconstitutional last year.

Under this 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 per cent as provided in the Affordable Housing Act, 2024.

The petitioners further want the matter referred to CJ Martha Koome saying the matter raises substantial questions of law that ought to be heard by an uneven number of judges.

Another case on housing levy

Separately, the court will also issue directions in a similar case filed by Nakuru-based doctor Benjamin Gikenyi.

The doctor in his papers says the Act has failed to appreciate that some Kenyans "wameshajipanga na housing."

Case on late politician Johjn Keen Sh13 billion estate

The High Court will mention a case in which the family of late veteran politician John Keen is reportedly fichting over his estate worth Sh13 billion. T

he war rages on despite a detailed will that Keen wrote before he died in 2015.

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