NAIROBI — Human rights organisations have filed a petition seeking to strike down Kenya’s housing levy, arguing that the policy deepens poverty and unfairly targets salaried workers.
The Kenya Human Rights Commission, Transparency International Kenya, the Institute for Social Accountability, Inuka Kenya Ni Sisi! and Siasa Place said the levy strips workers of the little disposable income left for food, healthcare, and education.
“It is ordinary Kenyans who are shouldering this tax, while the political elite remain untouched,” the groups said in a joint statement.
The levy, introduced in 2023 under President William Ruto’s administration, requires employees to surrender 1.5 per cent of their monthly salaries, with an equal contribution from employers. Officials framed it as part of a plan to fund affordable housing, reduce borrowing, and create jobs.
But critics say the fund has become a tool of political patronage. The petition points to recent allocations, including 20 per cent of new housing units promised to teachers after a State House meeting, and commitments to footballers during the African Nations Championship. “These pledges were made without public tendering or proper oversight,” the groups argued.
The case reopens a long-running legal battle. In late 2023, the High Court declared the levy unconstitutional, citing procedural flaws. That ruling was overturned in October 2024, when judges upheld the fund as lawful.
Now, campaigners are asking the court to suspend all deductions and revisit its earlier decision. They cited the 2024 economic performance report by the Kenya National Bureau of Statistics, which they say shows the levy’s regressive impact on vulnerable households.
President Ruto has stood firm. He insists the levy will deliver thousands of homes for low-income families, while also generating jobs and stimulating the economy. “This programme must succeed,” he said earlier this year, dismissing critics who accuse him of ignoring public frustration.
For many Kenyans, the debate cuts to the heart of fairness in public policy: whether the costs of national development are being shared equally, or whether the burden rests too heavily on the shoulders of the employed.
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