The Law Society of Kenya (LSK) has taken legal action by moving to court to contest the constitutionality of the Finance Act, 2023. The society argues that the mandatory affordable housing levy included in the Finance Act poses a threat to the socio-economic interests of Kenyan citizens.
The case names the National Assembly, Kenya Revenue Authority (KRA) Commissioner General, and the Attorney General as respondents.
According to court documents, the LSK contends that there is no justifiable reason for the government to impose a mandatory levy on its citizens. More so when a significant majority is already struggling with economic hardships due to multiple layers of taxes.
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Furthermore, the LSK highlights the heavy burden the housing levy places on both employers and employees. It asserts that the implementation of such a law will heighten the issue of unemployment in a country already grappling with low employment rates. Thus contradicting the principle of social justice stipulated in the Constitution.
“The petitioner has come to this Honorable Court under extreme urgency following the decision of the Respondents to gazette and enforce the unconstitutional, unlawful and unreasonable Finance Act 2023 that introduce mandatory affordable housing levy, implementation which threatens the social economic interests of Kenyans against the principle of social justice.”
Court papers
The LSK is seeking court orders to prevent the government from implementing the housing levy. It also aims towards enforcing Section 10 (2) (3) of the Income Tax Act, as amended by Section 7 of the Finance Act 2023.
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This legal challenge from the Law Society of Kenya adds another layer of complexity to the ongoing discussions surrounding the Finance Act, 2023.
