Breaking: High Court declares Housing Levy unconstitutional, cites lack of legal framework #FinanceAct2023

The High Court has declared Kenya’s Housing Levy unconstitutional, ruling that it lacks a comprehensive legal framework. The decision comes as part of the ongoing Finance Act 2023.

Breaking: High Court declares Housing Levy unconstitutional, says it lacks a comprehensive legal framework #FinanceAct2023 pic.twitter.com/us3DsEK0V3

— Citizen TV Kenya (@citizentvkenya) November 28, 2023

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The High Court of Kenya has recently declared the Housing Levy, as stipulated in the Finance Act 2023, to be unconstitutional. This ruling comes as a result of the levy lacking a comprehensive legal framework, according to the court. The decision has been met with mixed reactions from the public and has sparked a debate about the government’s role in providing affordable housing.

The Housing Levy was introduced as part of the Finance Act 2023, with the aim of funding the government’s affordable housing initiative. It required employees to contribute 1.5% of their monthly gross salary towards the levy, while employers were required to match this contribution. The funds collected were intended to be used for the construction of affordable housing projects across the country.

However, the High Court’s ruling has now deemed this levy to be unconstitutional due to the lack of a comprehensive legal framework. The court argued that the levy was implemented without proper legislation, making it inconsistent with the constitution. This decision has raised questions about the government’s adherence to legal procedures and has led to concerns about the legality of other government initiatives.

The ruling has been met with mixed reactions from the public. Some individuals and organizations have welcomed the decision, applauding the court for upholding the constitution and protecting citizens’ rights. They argue that the government should not impose mandatory levies without proper legal backing and that alternative methods should be explored to fund affordable housing projects.

On the other hand, there are those who view the ruling as a setback for the government’s efforts to address the housing crisis in the country. They argue that the Housing Levy was a necessary step towards providing affordable housing for all Kenyans and that the court’s decision will hinder progress in this area. They believe that the government should work towards rectifying the legal shortcomings and reintroducing the levy in a legally sound manner.

The ruling has also sparked a broader debate about the government’s role in providing affordable housing. Some argue that the government should focus on creating an enabling environment for the private sector to invest in affordable housing rather than relying on mandatory levies. They believe that this approach would encourage competition, innovation, and ultimately lead to more affordable housing options.

Others argue that the government has a responsibility to directly intervene in the housing market to ensure that affordable housing is accessible to all citizens. They believe that mandatory levies, along with other government initiatives, are necessary to address the housing crisis and bridge the gap between supply and demand.

In conclusion, the High Court’s declaration of the Housing Levy as unconstitutional due to the lack of a comprehensive legal framework has sparked a debate about the government’s role in providing affordable housing. While some welcome the ruling as a defense of citizens’ rights, others view it as a setback for addressing the housing crisis. The decision raises questions about the government’s adherence to legal procedures and highlights the need for a comprehensive approach to affordable housing..

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@citizentvkenya said Breaking: High Court declares Housing Levy unconstitutional, says it lacks a comprehensive legal framework #FinanceAct2023