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HomeUncategorizedCourt extends Gov't decision on house levy deduction

Court extends Gov’t decision on house levy deduction

The 1.5% Housing Levy reduction has been prolonged by the Court of Appeal until a decision is rendered on January 26.

The Appellate Court’s three-judge panel decided that employees must continue to contribute to the fund that the High Court deemed illegal, following the adjudication of an appeal filed by the National Assembly and its Speaker, Moses Wetangula.

Paul Gachoka, John Mativo, and Justice Lydia Achode made up the bench.

“All of the applications are merged once the parties are heard because they are based on the same High Court ruling from November 28, 2023. As the primary file, Civil Application No. E577/2023 is identified. The decision pertaining to these combined petitions is scheduled for January 26, 2024. read the decision

“Until the verdict is delivered, the situation that existed as of today will be upheld. Created on January 3, 2024, in Nairobi.” peruse a portion of the decision.

Notably, the government, represented by Attorney General Justin Muturi, begged the court to permit the deductions to continue until the issue was resolved prior to the judgment being delivered.

The government claims that because employment were produced, President William Ruto’s initiative benefited Kenyans.

On November 28, a three-judge panel consisting of Justices David Majanja, Christine Meoli, and Lawrence Mugambi ruled that the Housing Levy was unconstitutional.

The three-judge court claimed that because only employed Kenyans were subject to deductions, the fee was unconstitutional.

Notably, the Affordable Housing Bill, introduced by the government through Majority Leader Kimani Ichung’wah, also suggests 1.5% deductions for Kenyans who do not have official jobs.

However, it is anticipated that the bill’s development would be prolonged in court when the Vihiga High Court halted public involvement in December 2023 in order to hear the case and make a decision.

Kenyans have until December 28, 2023, to provide their opinions on the Bill.

Meanwhile, Ruto declared that the government will defy certain court rulings, accusing some members of the judiciary of undermining his development plan.

Nonetheless, Chief Justice Martha Koome, the Law Society of Kenya (LSK), and the opposition all criticized the President harshly.

In her response, Koome urged judges to carry out their duties without fear of coercion.

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