The government has defended the Affordable Housing Act 2024, asserting that it was created to ensure citizens have access to decent housing.
While critics, including petitioners in an ongoing case, labeled the 1.5% income levy under the Act as a ‘Ponzi scheme,’ the state argued that the rate was carefully negotiated.
Senior Counsel Prof Githu Muigai, Kiragu Kimani, and Mahat Somane urged a three-judge bench to dismiss petitions filed by 22 senators, led by Busia Senator Okiya Omtatah, Dr. Benjamin Gikenyi, and human rights activists. The petitioners raised concerns over double taxation, public participation, judicial independence, and discrimination.
The senators claimed the housing levy amounted to double taxation for individuals already holding mortgages. However, the state refuted this, stating that mortgages are credit facilities and debts, not taxes. They further argued that the levy was introduced to fund a public purpose—providing affordable housing to all citizens.
The petitioners also argued that the Act failed to consider people in the informal sector and mortgage holders with personal housing preferences, deeming the levy discriminatory. In response, the state maintained that there was no evidence of unfair discrimination and emphasized that public participation was carried out through memoranda, submissions, and legislative debate.
The Affordable Housing Bill, signed into law by President William Ruto in March 2024, reinstated the 1.5% housing levy and included informal sector workers. The court ruling is expected on October 22.
