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Housing Levy Hits: Kenyans Brace for January Payments as Court Battle Heats Up

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Housing Levy Hits: Kenyans Brace for January Payments as Court Battle Heats Up

 

Kenya’s contentious 1.5% housing levy casts a long shadow over January, as employees and employers brace for continued deductions despite a recent legal challenge. While the Kenyan High Court suspended the levy in November, deeming it unconstitutional, the Court of Appeal overturned that decision just weeks later, paving the way for its ongoing implementation.

 

Critics, including the Kenya Federation of Employers (FKE), remain vocal. “This is a blow to fairness and transparency,” lamented FKE CEO Jacqueline Mugo, echoing frustrations that the levy burdens taxpayers without a clear roadmap for the collected funds. Public dissatisfaction echoes online, with comments like, “Another weight on our backs – it’s just not right.”

 

However, the government maintains its resolute stance. “Affordable housing for all Kenyans is our mission, and the Housing Fund is key,” declared Charles Cheruiyot, Principal Secretary of the State Department for Housing and Urban Development. He assures the funds will fuel crucial initiatives like building affordable housing units, providing mortgages, and revitalizing slums.

 

This legal tug-of-war places Kenyans in a precarious position. January marks the month of back-to-school expenses and post-holiday financial adjustments, adding the levy’s bite to an already strained budget. One commentator voiced this anxiety, stating, “We can barely keep up with rising costs, and now this levy? It’s getting tough.”

As the February 9th Court of Appeal hearing looms, the levy’s fate hangs in the balance. Its outcome will impact millions of Kenyans and shape the government’s ability to tackle the nation’s housing deficit. Should the levy stand, its effectiveness and accountability will remain under scrutiny.

 

Meanwhile, Kenyans wait with a mix of apprehension and hope. The coming weeks will be crucial in determining whether the levy lives up to its promise of affordable housing for all, or remains a controversial burden on struggling shoulders.

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