The mandatory 1.5 per cent Housing Levy is facing another legal challenge after six Kenyans, led by Busia Senator Okiya Omtatah, moved to the Supreme Court seeking to halt its collection.
The petitioners filed an appeal on Monday, November 9, asking the court to overturn earlier judgments that upheld the Affordable Housing Act and suspend deductions from Kenyans’ earnings.
They are also seeking refunds for amounts already collected, arguing that income earners should not be compelled to contribute towards a housing programme from which they may never benefit through home ownership.
In their petition, the six want Sections 4 and 5 of the Affordable Housing Act, which establish the mandatory levy, declared unconstitutional and unlawful.
They are further seeking orders barring the Kenya Revenue Authority (KRA) from continuing to collect the deductions.
The petitioners maintain that the levy infringes on constitutional provisions relating to property rights, taxation and fairness, describing it as an additional financial burden on workers.
They argue that taxation should be guided by principles of social justice and equity, insisting that the burden should not fall disproportionately on low-income earners and marginalised groups.
In their submissions, they stated that tax measures must be socially just, adequate, equitable and progressive, warning against policies that place an unfair financial strain on vulnerable Kenyans.
