A Kenyan high court has declared unconstitutional a widely-condemned 1.5% housing levy contained in a finance law that came into effect in July.
A three-judge bench sitting in Nairobi ruled today that the housing levy lacked a comprehensive legal framework and was irrational.
The introduction of the tax and other measures in the Finance Act 2023 prompted days of heavy opposition-led protests.
“The (housing) levy against persons in formal employment to the exclusion of other non-formal income earners without justification is discriminatory, irrational, arbitrary, and against the constitution,” said high court justice David Majanja.
The court ordered the government to stop the collection of the tax, saying it violates the constitution.
The government, which insists the levy is intended to fund affordable housing for Kenyans, is expected to appeal against the decision.
Its lawyers have asked the high court for a 45-day stay of the order.
The high court stayed its ruling until January 10 to allow for the government to appeal.
The finance law, the first since president William Ruto came to office in September last year, also doubled a fuel tax from 8 % and increased the top income tax rate for salaried residents.
#FinanceAct2023 trended on X immediately after the ruling.
The 1.5% housing levy has been matched by employers since its introduction in July
