William Ruto Wins As Court Extends Collection Of Housing Levy Until January 26

• The Court of Appeal has extended conservatory orders allowing government to collect housing levy
• A three-judge bench led by Lady Justice ruled that the status quo should be maintained until the case is determined
• In November 2023, High Court issued stay orders blocking the ruling that declared the housing levy unconstitutional.

TUKO.co.ke journalist Wycliffe Musalia brings over five years of experience in financial, business, and technology reporting, offering deep insights into Kenyan and global economic trends.

Kenyans will continue to contribute 1.5% of their salary towards the housing levy for another month.

The High Court issued a stay order for the government to continue collecting the housing levy until January 10, 2024.

This followed the ruling in November 2023, which declared the housing fund unconstitutional.

Ruto to continue collecting housing levy

In a ruling issued on Wednesday, January 3, the Court of Appeal ordered the maintenance of the status quo on the collection of housing levy.

A three-judge bench led by Lady Justice Lydia Achode said the government will continue to collect the tax until the case is determined on January 26.

“In the meantime, the status quo obtaining as of today shall be maintained until the delivery of the ruling,” ruled Lydia Achode, John Mativo and Mwaniki Gachoka, as quoted by NTV.

Treasury CS Njuguna Ndung'u moved to the appellate court to stop the order blocking the collection of the levy.

Why Ruto want housing levy collection to continue?

He argued that the programme has employed more than 120,000 Kenyans, adding that freezing its funding will myriapods the progress.

In his petition, Ndung'u pleaded with the judges to extend the conservatory orders for the government to collect the levy.

In the November 2023 ruling, the court declared sections 84, 72 to 78 of the Finance Act null and void, stating that the housing levy amendment lacks a comprehensive legal framework.

However, Lawyer George Murugara requested a 45-day grace period to comply with the court ruling to allow for necessary adjustments to the taxation procedure.

Ruto vows to defy the court

This came as President William Ruto declared war against corrupt judicial officers, derailing his development agenda.

Ruto said the housing and Social Health Insurance Fund programmes are constitutional and no one should stop them.

The head of state maintained that a few individuals and cartels who used to embezzle NHIF funds are using the courts to fight back.