A High Court bench has dismissed consolidated petitions challenging the constitutionality of the Affordable Housing Act 2024 and its 1.5% housing levy. The ruling allows the government to proceed with monthly deductions of 1.5% of employees’ gross income, matched by employers, to fund the affordable housing program.
The decision marks a major legal victory for the State, with six petitions consolidated into the case. The bench, comprising Justices Ogla Sewe, John Chigiti, and Josephine Mong’are, ruled that the Affordable Housing Act 2024 is in line with the Constitution of Kenya and meets international standards for housing development.
Key Rulings by the Bench
- Public Participation Was Adequate
The court found that the government adequately involved the public in the legislative process leading to the enactment of the Affordable Housing Act. The bench ruled that sufficient effort was made to collect and consider public input, meeting the constitutional requirement for public participation. - The Levy Is Not Discriminatory
Petitioners had argued that the housing levy was discriminatory. However, the court ruled that the levy applies to all Kenyans, including those without formal payslips, and is not limited to salaried employees, making it inclusive rather than discriminatory. - The Levy Is Constitutionally Sound
The judges affirmed that the structure and administration of the levy align with constitutional principles. They noted that Parliament holds the authority to design and implement taxation laws, including the housing levy, which is intended to fund affordable housing initiatives. - Section 4 of the Act Is Constitutional
The bench rejected arguments that Section 4 of the Act, which mandates 1.5% deductions from gross income, was unconstitutional. The judges emphasized that Parliament has the discretion to determine taxation frameworks, provided they are lawful and properly enacted. - Purpose of the Act Aligns with National and International Goals
The court ruled that the Affordable Housing Act’s objectives align with international conventions and the Kenyan Constitution, including the right to accessible and adequate housing. Section 3, which mandates the remittance of deductions by the 9th of each month, was also deemed constitutional.
The decision provides the government with the green light to implement the housing levy as part of its Affordable Housing Program. The initiative aims to address Kenya’s housing deficit by promoting access to affordable homes for citizens, contributing to the national development agenda.
While the ruling has generated mixed reactions, it solidifies the government’s position and supports the continuation of employer-matched deductions to fund the housing initiative.
The High Court’s dismissal of the petitions is a significant legal win for the government, paving the way for implementation of the Affordable Housing Act 2024.
