The Law Society of Kenya has moved to court to challenge the constitutionality of the Finance Act 2023 and wants the government stopped from implementing it.
In a certificate filed under urgency, the society through lawyer Noel Ngoloma Okwach claims that the mandatory affordable housing levy threatens the social economic interest of Kenyans.
"We are seeking the court to issue orders prohibiting the government from implementation, further enforcing section 10 (2) (3) of the Income Tax Act as amended by Section 7 of the Finance Act 2023," read the court documents.
LSK argues that the decision of the respondents to gazette and enforce the Finance Act 2023 that introduces mandatory affordable housing levy, and implementation, threatens the social economic interests of Kenyans against the principle of social justice.
"This Court ought to safeguard the people’s right to life which is on the verge of being rendered meaningless since their opportunity to make a living is under threat by the impugned Section 7, 33 (a)and 84 of the Finance Act," LSK says.
LSK argues that the heavy burden to be shouldered by the employers and employees, the enactment of the law will further lower the rate of employment in a country which is already grappling with low rates of employment which is against the principle of social justice as stipulated in the Constitution.
The society further claims the process of enactment of the impugned legislation was fraught with blatant procedural and substantive illegalities.
The respondents intentionally made a mockery of the process of public participation which led to the enactment of an unfair, unsustainable and illicit legislation.
"There exists no rationale whatsoever as to why the government through the National Assembly would force its citizens to contribute to a mandatory scheme in a country where a majority of its citizens are already grappling with harsh economic times due to the existence of multiple layers of taxes," the society argues.
It says the amendment to the Employment Act runs afoul of the provisions of Article 40 (2) of the Constitution which safeguards against it as it seeks to arbitrarily deprive citizens of their hard-earned money.
