Ruto to continue with housing project as court shoots down levy collection

President William Ruto has vowed to continue with the Affordable Housing project. The declaration comes after Friday's Court of Appeal ruling halting the collection of housing levy deductions.

Speaking to Kiutine residents in Meru County on Friday, Ruto said Kenyans are bound to decide on whether the housing project should continue since the public participation is on them.

“The will of the people is the will of God. Therefore, I have enough authority and I will move the housing project forward,” he said.

The President emphasised that the move would create jobs for the youth which would prevent them from contemplating holding protests.

Affordable housing ruling

In a ruling consisting of a three-judge bench, the Court of Appeal ordered the government to stop the collection of Housing Levy until cases filed against the programme are heard and determined.

The judges including Justice Lydia Achode, John Mativo and Mwaniki Gachoka ruled that the housing levy remains suspended as declared by the High Court.

They noted that there is no legal framework for the government to continue making deductions as per the Finance Act 2023's amendment to the Employment Act 2007.

They also declined an invitation to allow the government to collect the levy pending a hearing of the appeal.

“The trial Court held that the Housing Levy was introduced without a legal framework. It also held that the levy was targeting a section of Kenyans. 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. Public interest in our view tilts favour of in not granting the stay or the suspension sought," the Court of Appeal ruled.

Last November, a three-judge bench of the High Court ruled that the Finance Act 2023 amendment to Sec84 of the Finance Act amending the Employment Act introducing the Housing Levy was unconstitutional.