DP Gachagua's appeal to Judiciary after Housing Levy declared unconstitutional

DP Gachagua's appeal to Judiciary after Housing Levy declared unconstitutional

DP Rigathi Gachagua speaks during the Second Procurement and Supply Chain Dialogue at Sarova Whitesands Beach Resort, Mombasa on November 15, 2023. PHOTO | DPCS

Deputy President Rigathi Gachagua has urged the Judiciary to consider the broader societal impact of its decision to declare the housing levy unconstitutional.

Speaking on Tuesday when he officially opened the 17th annual Kenya Institute of Planners Conference in Kwale County, Gachagua highlighted that despite heightened taxes on taxpayers, the levy is enabling the government to build houses en masse in order to alleviate Kenya's housing shortage.

"Affordable housing is one of the most thoughtful strategies of our administration. People have gone to court to try to suspend the housing levy and sabotage the housing programme. As much as we respect the independence of the Judiciary, I want to request our judges to exercise judicial digression and not to sabotage that programme," said Gachagua.

"We have thousands of our young people engaged in that programme. That programme will dignify the people of Kenya."

He added that the Kenya Kwanza administration is committed towards implementing the affordable housing agenda by constructing 250,000 housing units annually, despite the legal hurdles posed by some litigants challenging the plan.

DP Gachagua's sentiments come after the High Court in Nairobi declared the housing levy as unconstitutional ruling that it violated Article 10, 2 (a) of the constitution.

The court then granted stay orders restraining quashing of the affordable housing levy until January 10, 2024.

The levy, a cardinal pillar in the Finance Act, started being deducted from formally employed Kenyans in July, with the Kenya Revenue Authority (KRA) mandated as the collecting agent.

Employers have been remitting their 1.5 percent contribution alongside a similar rate for their employees as well.


Citizen Digital High Court Rigathi Gachagua Housing Levy

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