In a bold move, President William Ruto has announced that his government will challenge the recent appellate court decision that bars the state from deducting a 1.5 per cent housing levy from Kenyan employees, with employers required to match the contribution.
The housing levy, initially introduced as a means to fund affordable housing projects, has faced scrutiny and legal challenges since its inception. The recent appellate court ruling has brought the controversy to a new level, prompting the government to take decisive action.
The appellate court’s decision to halt the deduction raises questions about the financial feasibility of ongoing and future housing projects. President William Ruto, in a press statement, emphasized the government’s commitment to addressing the nation’s housing deficit and ensuring citizens have access to affordable housing. He argued that the housing levy is a crucial component of the funding mechanism for these initiatives.
Critics of the housing levy contend that the deduction places an additional burden on employees, particularly in the wake of economic challenges and the global pandemic. The court’s decision was seen as a victory by those advocating for the rights of workers, who argue that such deductions impact the already strained disposable income of many Kenyans.
The government’s decision to challenge the court’s ruling underscores the importance it places on realizing its housing agenda. President William Ruto emphasized that affordable housing is a cornerstone of his administration’s efforts to improve living standards and stimulate economic growth.
As the legal battle unfolds, stakeholders are closely watching the implications on both the housing projects and the broader economic landscape. The outcome of this challenge will undoubtedly shape the trajectory of housing policies in Kenya, influencing how the government addresses the critical issue of housing affordability.
In conclusion, President William Ruto’s decision to challenge the appellate court’s ruling on the housing levy reflects the government’s unwavering commitment to addressing the housing crisis. The legal battle ahead will determine the fate of the controversial levy and its role in funding crucial affordable housing projects across the country.
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President William Ruto has declared that his government will be challenging the appellate court's decision barring the state from deducting housing levy from Kenyans.
The government was deducting 1.5 per cent from each employee with employers matching with an equivalent amount. pic.twitter.com/nfYPLPsfxg
— TheStarKenya (@TheStarKenya) January 26, 2024