By Ezrah Kashumbusha.
NAIROBI, March 4, 2024 | The Kenya Law Society, under the leadership of President Faith Odhiambo, has announced plans to take legal action against the Kenya Revenue Authority (KRA) over what it terms as “illegal deductions” on a housing levy. This decision marks a significant escalation in the ongoing dispute over the contentious levy, which has seen deductions from taxpayers and government employees without a legal foundation.
Addressing journalists on Monday, Odhiambo highlighted the lack of a legal basis for the deductions and accused other government organs of complicity in the unauthorized collection of funds. The Law Society’s president has made a call to action, urging Kenyans who have been subjected to these deductions to come forward with their evidence. “We call upon all employees who have suffered this illegal deductions to get in touch with the Law Society of Kenya through the Email address lsk@lsk.or.ke and share their payslips,” Odhiambo stated, ensuring that measures would be taken to protect the identities of those who respond.
The controversy stems from a statement issued by the outgoing president of the Law Society of Kenya to the Attorney General, Justin Muturi, demanding a halt to the collection of the housing levy, citing its lack of legal basis. This legal challenge is not without precedent; on November 28, 2023, the High Court ruled that the housing levy was illegal and discriminatory towards workers in the informal sector. Despite this ruling, the levy’s collection continued unabated until January 2024, pending the filing of an application that sought to allow the government to proceed with its collection efforts.
However, the situation took a definitive turn on January 26, when the Appellate Court dismissed the government’s application and reaffirmed the High Court’s ruling, deeming the 1.5 percent housing levy intended to finance affordable housing as illegal. This ruling has paved the way for the Law Society’s legal challenge, setting the stage for a significant legal showdown that could have far-reaching implications for the government’s affordable housing initiative.
The Law Society’s decision to sue the KRA over the housing levy has ignited a debate on the legal and ethical considerations of tax collection and the government’s role in ensuring affordable housing for its citizens. As the case progresses, it will undoubtedly attract significant attention from the legal community, taxpayers, and government officials alike, all keen to see how this legal drama unfolds.
