Blow to Kenyans After High Court Says Housing Levy is Legal: What You Need to Know

The High Court has given the government the green light to continue collecting the Housing Levy from Kenyan workers. Here’s what this important decision means for you.

The Big Decision

Three judges – Olga Sewe, John Chigiti, and Josephine Mong’are – ruled on Tuesday that:

• The Affordable Housing Act 2024 was properly created
• The government followed the right steps
• The public had enough chance to give their views

What This Means for Your Paycheck

If you’re employed, you’ll continue to pay:

• 1.5% of your salary to the housing levy
• Your employer will match this with another 1.5%
• Total contribution: 3% of your gross salary

What the Court Looked At

The judges carefully checked:

• If the public was properly involved
• Whether the law treats everyone fairly
• If the government followed the right steps
• How the land for housing projects was acquired

Why Some People Challenged the Levy

Six different cases were filed questioning:

• Whether the levy was fair to everyone
• If proper procedures were followed
• How the informal sector would be affected

What the Judges Said

Justice Mong’are pointed out that those challenging the levy:

• Couldn’t prove it was unfair
• Didn’t show how informal sector workers would be affected
• Failed to demonstrate discrimination

What Happens Next

• The government can continue collecting the levy
• Housing projects will proceed as planned
• Thousands of Kenyans will keep contributing to the fund

This ruling affects many working Kenyans who will continue contributing to the government’s affordable housing program through their monthly salaries.

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