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Blow to Ruto as Court of Appeal halts collection of housing levy
President William Ruto has suffered a blow this morning after the Court of Appeal declined to extend an order allowing the government to continue collecting the housing levy.
A bench of three judges ruled that public interest tilts in favour of not granting the order sought by the government.
“Public interest in our view tilts favour of in not granting the stay or the suspension sought. Public interest tilts in favour of awaiting the determination of the issues raised in the intended appeals,” Justices Lydia Achode, John Mativo and Mwaniki Gachoka said.
The government had asked the Court of Appeal to suspend the judgement of the High Court that found the levy illegal as it targets a section of the population.
In a decision last year, three judges of the High Court ruled that the introduction of the Housing Levy through amendment of the Employment Act by Section 84 of the Finance Act, 2023 lacks a comprehensive legal framework in violation of Articles 10, 201, 206 and 210 of the Constitution.
Justices David Majanja, Christine Meoli and Lawrence Mugambi further stated that the imposition of the housing levy against persons in formal employment to the exclusion of other non-formal income earners to support the national housing policy is without justification is unfair, discriminatory, and irrational.
The appellate court said in the ruling that the question that begs an answer is whether in the circumstances of the case it would be in public interest to grant a stay whose effect is to allow a statute that has been found to be constitutionally illegal to continue being in the law books pending the hearing of an appeal.
“We do not think so. This is because should
the Court hearing the appeal affirm the constitutional invalidity of the impugned laws, then all actions that will have been undertaken under theimpugned sections of the law during the intervening period will be legally frail,” said the judges.
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