Kenya: Housing Levy Out First Thing as President in 2027 - Kalonzo

30 January 2024

Nairobi — Wiper Leader Kalonzo Musyoka has declared he will revoke the Housing Levy if elected as President in the 2027 General Election.

He stated that his first Executive Order upon assuming office would contain the repeal.

"As President, my first Executive Order will be to repeal the Housing Levy, which is a Slush Fund," he stated on his X account on Tuesday.

Musyoka had in the past announced his intention to run for the presidency in the 2027 elections to unseat President William Ruto.

In July 2023, the government implemented the controversial Levy, compelling both employees and employers to contribute 1.5 percent of their gross monthly salary to a fund designated for affordable housing.

President William Ruto champions the affordable housing fund as his flagship initiative, utilizing it to generate employment opportunities for millions of unemployed youth in the country.

However, the project implementation has encountered obstacles in addressing legal challenges, with stakeholders questioning its underlying framework.

The Court of Appeal on January 26, 2024, declined to lift the suspension of the Housing Levy, thereby preventing the government from collecting contributions from both employees and employers. President Ruto has vowed to appeal the ruling.

"In our view, the public interest lies in awaiting the determination of the appeal," Justices Lydia Achode, John Mativo, and Mwaniki Gachoka declared.

The Attorney General and National Treasury had petitioned the Court of Appeal to lift the suspension of the Housing Levy, imposed by the High Court in November 2023.

However, the Court of Appeal rejected their request, arguing that it's in the "public interest" to wait for the determination of pending appeals against the High Court ruling.

"We direct that the appeals be heard expeditiously so that the issues raised in the appeals can be resolved with finality," the judges ordered.

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