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Kenyan Court of Appeal Upholds High Court Decision: Housing Levy Declared Unconstitutional

BY Steve Biko Wafula · January 26, 2024 12:01 pm

KEY POINTS

The Court of Appeal's decision not to grant a stay of execution pending appeal is indicative of the judiciary's stance that the public interest is better served by resolving the matter expeditiously and preventing the potential accrual of irreversible actions under the impugned law

The Court of Appeal in Nairobi, led by Justices Lydia Achode, John Mativo, and Mwaniki Gachoka, has upheld the High Court’s declaration that the Housing Levy, as stipulated under sections 76, 77, 78, 84, 87, 88, and 89 of the Finance Act, is unconstitutional. This decision carries significant implications for the rule of law and governance in Kenya.

The crux of the appellate court’s decision rested on the principle of constitutionality, which requires that all laws align with the country’s Constitution. The High Court had previously found that the levy was introduced without a proper legal framework and targeted a specific group of Kenyans, thus violating constitutional mandates.

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The appellate ruling emphasized the importance of the presumption of constitutional validity, which was negated once the trial court pronounced the sections in question as unconstitutional. The appellate court underscored that allowing a statute that has been deemed constitutionally infirm to remain enforceable would pose a risk of irreversible consequences.

The Court of Appeal’s decision not to grant a stay of execution pending appeal is indicative of the judiciary’s stance that the public interest is better served by resolving the matter expeditiously and preventing the potential accrual of irreversible actions under the impugned law.

This ruling serves as a reminder of the judiciary’s role as the guardian of the Constitution and its principles. It also provides a clear message to the legislature that laws must be crafted within the bounds of constitutional provisions, respecting the rights and protections it affords to the citizens.

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Here is the ruling:

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Steve Biko is the CEO OF Soko Directory and the founder of Hidalgo Group of Companies. Steve is currently developing his career in law, finance, entrepreneurship and digital consultancy; and has been implementing consultancy assignments for client organizations comprising of trainings besides capacity building in entrepreneurial matters.He can be reached on: +254 20 510 1124 or Email: info@sokodirectory.com

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