The Court of Appeal has declined to suspend the High Court order that declared the housing levy as unconstitutional.
In a ruling delivered on Friday, the Appellate Court judges Lydia Achode, Paul Gachoka and John Mativo cited public interest in the matter, underscoring the High Court ruling that the Housing Levy was unconstitutional
The Levy, a fundamental pillar in the Finance Act, started being deducted from formally employed Kenyans in July.
In November, the High Court three-judge Bench declared the Housing Levy unconstitutional for being discriminatory and creating unequal principles hence giving the government an opportunity to move to the Court of Appeal.
Employers have been remitting their 1.5 percent contribution alongside a similar rate for their employees as well.
The government had relied on the levy to enable them achieve their plan of constructing affordable homes.
The Finance Bill 2023 was passed by parliament on June 22, 2023, and later assented by President William Ruto on June 26.
Busia Senator Okiya Omtatah and six other entities had moved to court seeking to stop the implementation of the Finance Act, 2023.
However, President William Ruto has insisted that the plan to ensure all Kenyans have affordable and decent housing will go on.
As he said the government is already creating a law that will guide his housing project.
He insisted that the court should have allowed them to complete creating the law.
