Kenya’s High Court had on Tuesday, November 28, declared the 1.5% levy proposed to fund affordable housing that was imposed as part of a finance law sanctioned in June as unconstitutional, but it had later stayed the ruling until January 10, to permit the government to appeal the proposal.
The law, which also increased the fuel tax and hiked the top income tax rate, had sparked destructive protests in July by opponents who remarked that it would further squeeze households at a time of increasing living costs.
In its ruling, the court revealed that the government had not given a rational explanation for why it had adopted the housing levy only on workers who were employed in the formal sector.
The judges had approved the government lawyers’ request for a 45-day stay of the order, as they deliberate on whether to appeal or make changes to the law to address the judges’ worries.
President William Ruto’s government has argued for higher taxes, stating that they were of great importance in regards to stabilizing the government finances, which have been hit by ever increasing debt repayments, and to widen the access to housing.
