Housing Levy Nullified

Housing Levy Nullified

Housing Levy Nullified

On Tuesday, a three-judge bench declared that the Housing Levy and other provisions of the Finance Act were unconstitutional. Justices David Majanja, Christine Meoli, and Lawrence Mugambi rendered the decision.

The administration of President William Ruto was ruled to be in violation of the Constitution and ordered to stop collecting the Housing Levy. “The levy against persons in formal employment to the exclusion of other non-formal income earners without justification is discriminatory, irrational, arbitrary and against the constitution,” the court decided. On July 18, Chief Justice Martha Koome appointed the judges to consider and rule on petitions against the Finance Act of 2023.

This occurred following a legal challenge to the Finance Act filed by Busia Senator Okiya Omtatah, who claimed it was unconstitutional.According to Justice Mugambi’s ruling, the budget estimates were given lawfully, and the Finance Bill was a money bill as defined by Article 114 of the Constitution.

“In view of the foregoing, we are satisfied that, applying the peel and substance test, the Finance Bill 2023 is a money bill; however, it contains matters that are extraneous to a money bill and are unconstitutional,” the Supreme Court said.

Although the High Court found the National Assembly’s public engagement process adequate, it criticized the Parliamentary Committee for failing to provide justification for rejecting Kenyans’ recommendations.

After ruling that compelling alcohol manufacturers and betting companies to submit excise duty within 24 hours was an administrative matter, the High Court declined to interfere, giving Ruto’s administration a reprieve.