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Housing Levy is legal,High court declares.

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By Micah Sali

The High Court has upheld the legality of the housing levy introduced by the Kenya Kwanza administration.

In a ruling this afternoon, a three-judge bench consisting of Judges Olga Sewe, John Chigiti, and Josephine Mong’are confirmed the legality of the Affordable Housing Levy (AHL) and stated that public participation in its implementation was sufficient.

Effective from March 19, 2024, employers are required to deduct 1.5% from employees’ gross monthly salaries, with an additional 1.5% contributed by the employers themselves.

All individuals earning income in Kenya must now remit 1.5% of their gross income as the AHL. The remittance is due by the ninth working day following the month in which the salary was paid or income accrued.

“This is nothing new for me; the government has never stopped deductions from the beginning,” said James Juma, a national government official based in Eldoret.

Ends

Micah Sali is a Senior Editor at The Intellectual Post Digital Publication

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