The Kenya Human Rights Commission, along with six other organizations, has filed a legal challenge to the backdating of the Affordable Housing Levy, which was set at 1.5 percent of gross salary in the Finance Act 2023.
The petitioners want conservatory orders issued against the collection of backdated taxes, according to court documents filed before the Nairobi High Court.
They contended that if the courts rule that certain provisions of the Finance Act are unconstitutional, the taxes deducted will not be refunded.
Other institutions that supported the suit included the Katiba Institute, The Institute for Social Accountability (TISA), Transparency International Kenya, the International Commission of Jurist – Kenya, Siasa Place, and Tribeless Youth.
“Accordingly, Petitioners seek a conservatory order suspending specific provisions whose implementation has an irreversible effect and cannot be refunded,” read the Court documents in part.
“Giving the Act retrospective effect to July 1, 2023, as opposed to the date of Court of Appeal ruling lifting the conservatory orders is akin to punishing the petitioners for daring to question the measure in court and should be suspended,” the activists added.
The petition by the seven civil groups was about the move by the Ministry of Lands to backdate the 1.5 percent Housing Fund to July 1. This directive is going to see employees double taxed for the Housing Fund this August.
