•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, therefore, means that the housing levy remains suspended as declared by the High Court.
President William Ruto has declared that his government will be challenging the appellate court's decision barring the state from deducting housing levy from Kenyans. https://rb.gy/ln1don
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President William Ruto has declared that his government will be challenging the appellate court's decision barring the state from deducting housing levy from Kenyans.
The government was deducting 1.5 per cent from each employee with employers matching with an equivalent amount.
That however grounded to a halt after the Court of Appeal declined to allow the collections to continue.
Speaking in Meru County on Friday, the President said they will be appealing the decision.
He defended the housing programme describing it as the cornerstone of his plan to create employment for jobless Kenyans.
"We are going to appeal the decision. We will make the requisite law so that our agenda to create employment for jobless youths who have finished school but have nowhere to go is realized through the housing projects," the President said.
"It is the first time in the Republic of Kenya that we have an administration that has a clear and demonstrable plan to create jobs for millions of young Kenyans."
The President said the Housing projects across the country have absorbed various skilled Kenyans into the working bracket enabling them to earn a living.
He said his government looks forward to creating about 300,000 jobs through the housing program before the end of the year.
The declaration now means that the Attorney General is likely to move to the Supreme Court to challenge the decision.
As that pends, salaried Kenyans have been spared from remitting the contentious levy that would have seen their gross pay shrink significantly.
The import of the court of appeals decision halts the deductions until the appeals pending by the Attorney General, National Treasury and National Assembly are determined.
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.
"Public interest in our view tilts in favour of not granting the stay or the suspension sought," they added.
They said it is in the public interest that the appeals first be heard.
This, therefore, means that the housing levy remains suspended as declared by the High Court.
The Attorney General and the National Treasury moved to the appellate court after the High Court found the deductions unconstitutional.
They told the court that the suspension would lead to a massive budgetary crisis and confusion in the country.
They sought orders halting the implementation of the High Court judgement that rendered the housing levy unconstitutional pending the determination of their appeal.