RELIEF

Refund housing levy, Raila allies tell state after court verdict

The court on Friday declared the levy unconstitutional.

In Summary
  • Court declined to suspend orders barring the state from deducting housing levy from Kenyans.
  • In the first quarter of the financial year, deductions from employers and employees had hit  Sh11.83 billion
ODM leader Raila Odinga, Kwale Woman Representative Fatuma Masito and Kwale Senator Issa Boy at Kwale Baraza Park in Matuga subcounty on Thursday, January 25, 2024.
ODM leader Raila Odinga, Kwale Woman Representative Fatuma Masito and Kwale Senator Issa Boy at Kwale Baraza Park in Matuga subcounty on Thursday, January 25, 2024.
Image: SHABAN OMAR

Opposition chief Raila Odinga's allies are demanding the government refund all deductions towards the housing levy.

This follows Friday court ruling that declared the levy unconstitutional.

The leaders praised the Court of Appeal's decision, saying it is a victory for Kenyans.

The ruling by the three-judge bench, they said, is a relief to millions of suffering Kenyans.

Speaking in Voi, Taita Taveta county, opposition leaders said the landmark decision has restored public confidence in the courts.

ODM secretary general Edwin Sifuna urged the government to initiate plans of refunding the dues collected from taxpayers.

“As taxpayers, who were forced to contribute to the levy, we are telling Ruto to immediately refund all the monies that were illegally deducted,” he said.

National Assembly Minority leader Opiyo Wandayi said Kenyans should get back their contributions in line with the court ruling.

“That money they have collected they must refund to the workers,” the Ugunja MP said.

The Orange party in a statement also thanked the appellate court for standing with Kenyans.

"This is a victory for Kenyans," ODM said.

On Friday, the Court of Appeal declined to suspend orders barring the state from deducting housing levy from Kenyans.

According to Treasury documents, deductions from employers and employees had hit Sh11.83 billion in the first quarter of the financial year.

The document covering July to September 2023 and tabled before the National Assembly’s Finance Committee, shows the Treasury collected Sh7.9 billion in August and Sh3.93 billion in September.

Both employers and employees contributed 1.5 per cent of gross salary to the fund for the construction of affordable houses.

Justices Lydia Achode, John Mativo and Gatembu Kairu in declining the state's application, said public interest lies in awaiting the determination of the appeal.

"This is because if the stay sought is granted at the stage, should we affirm the challenged decision, then some far-reaching decisions that will have been undertaken pursuant to the challenged laws may not be reversible," they said.

This means the housing levy remains suspended as declared by the High Court.

During the Voi rally, ODM leaders. led by Mombasa Governor Abdulswamad Nassir, continued with their push for a Raila’s sixth stab in the August 2027 general election.

The ODM brigade will on Saturday conclude the Coast tour with a major rally in Mombasa.

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