The High Court of Kenya rendered a verdict, deeming unconstitutional a 1.5% levy designed to finance affordable housing. This levy had been instituted as a component of a financial legislation enacted in June.
The legislation, which concurrently augmented fuel taxes and elevated the highest income tax rate, incited vehement protests in July. Opponents argued that it would exacerbate financial strain on households amid escalating living expenses.
In its judgment, the court articulated that the government had failed to furnish a logical justification for selectively applying the housing levy solely to employees within the formal sector.
Government attorneys promptly sought a 45-day stay of the order, aiming to deliberate on whether to file an appeal or institute amendments to the law to address the apprehensions raised by the judges.