The Law Society of Kenya (LSK) has now filed a legal challenge to the validity of the Finance Act, 2023, particularly the implementation of the housing levy.
LSK contends in a certificate of urgency that the required affordable housing levy jeopardizes Kenyans’ social and economic interests.
“The petitioner has come to this Honorable Court under extreme urgency following the decision of the Respondents to gazette and enforce the unconstitutional, unlawful and unreasonable Finance Act 2023 that introduces mandatory affordable housing levy, implementation which threatens the social economic interests of Kenyans against the principle of social justice,” reads court papers
According to the LSK, there is no reason for the government to force people to contribute to a mandatory scheme in a country where the majority of its citizens are already struggling financially due to the existence of many layers of taxation.
Similarly, the legal profession contends that the hefty responsibility must be shared by both employers and employees.
It further claims that the enactment of the Act will further reduce employment in a country already dealing with low rates of employment, which it claims violates the Constitution’s tenet of social justice.
LSK now wants the court to issue orders prohibiting the government from implementing the housing levy, further enforcing Section 10 (2) (3) of the Income Tax Act as amended by Section 7 of the Finance Act 2023.
