- Peter Okiro takes the housing levy dispute to the Supreme Court following the Court of Appeal ruling.
- Respondents have 14 days to respond ahead of a December 4 mention.
- The 1.5 per cent housing levy remains in force as the fresh appeal proceeds.
Peter Okiro has taken the fight over the 1.5 per cent housing levy to the Supreme Court. He has filed a petition of appeal against the Court of Appeal decision that upheld the Affordable Housing Act, 2024.
Directions from the Supreme Court now set the timetable. Okiro was ordered to serve the petition on the respondents by close of business on the same day. They have 14 days from service to file their responses, after which Okiro gets seven days for a rejoinder, if necessary. A virtual mention is set for December 4, 2026, when the court will give further directions.
Importantly, none of this decides the appeal. The directions do not suspend the levy either, so deductions continue as before.
The petition follows a Court of Appeal judgment on September 25, 2026. A five-judge bench dismissed 42 consolidated appeals against the Act. It found that the levy was a lawful use of the government’s taxation powers and served a legitimate public purpose.
The judges also dismissed the argument that the levy violates property rights because employees fund a programme they may never benefit from directly. “Taxation enacted through Parliament for a clear public purpose does not violate private property rights,” the court said. It added that the Act responds directly to the constitutional duty to provide accessible and adequate housing.
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Concerns about discrimination fared no better. According to the bench, using different collection methods for formal and informal sector workers is not unconstitutional, and salaried employees are not being unfairly singled out. The government had defended the law by pointing to nationwide consultations, stakeholder hearings and written and oral memoranda as proof that Parliament met the public participation test.
The case has a long history. In November 2023, the High Court declared the levy under the Finance Act, 2023 unconstitutional. It cited the lack of an adequate legal framework and discrimination against salaried workers. In response, the government introduced the Affordable Housing Bill, which became law after presidential assent on March 19, 2024. Fresh petitions followed, and the High Court dismissed them in October 2024. Appeals from that decision led to the September 2026 ruling.
Under the framework, employees contribute 1.5 per cent of their gross monthly salary, and employers match it with another 1.5 per cent. Non-salaried earners also pay 1.5 per cent of gross income, subject to the applicable statutory provisions.
By reporter
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