President William Ruto has announced the government’s commitment to revising its policies in response to the High Court’s declaration that certain provisions of the Finance Act, 2023, including the Housing Levy, are unconstitutional.
Speaking at the 5th Congress of the International Trade Union Confederation-Africa held in Nairobi on November 28, 2023, President Ruto assured that the government would respect the court’s decision and make necessary adjustments to align with the law appropriately.
“I know the court has said we should go and readjust the law to make it aligned appropriately, that, we are going to do,” stated President Ruto during the event.
Addressing concerns that the housing project primarily benefited the government rather than the intended Kenyan citizens, President Ruto refuted such claims. He reported significant progress, stating, “I want to report to you, in the last 8 months we have created 120,000 jobs from our housing plan.”
President Ruto also outlined the government’s broader goals, emphasizing efforts to enhance digitalization through the establishment of Information Communication and Technology (ICT) hubs. He mentioned a parliamentary bill underway to facilitate the implementation of this initiative.
Furthermore, the Head of State revealed a bilateral agreement with the German government, aiming to enable more Kenyans to work in Germany.
The High Court’s ruling on Tuesday deemed certain aspects of the Finance Act, 2023, including the Housing Levy, unconstitutional. The 3-judge bench, composed of Justices David Majanja, Christine Meoli, and Lawrence Mugambi, ordered the government to halt Housing Levy deductions, citing it as discriminatory, irrational, arbitrary, and against the constitution.
Despite this ruling, the court later granted stay orders, requested by the government, allowing the retention of Housing Levy funds for a period of 45 days. The development reflects ongoing legal complexities surrounding the contested Finance Act provisions.
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