Affordable Housing Act 2024: New Law Could Prevent Kenyans from Asking for Refund

 

President William Ruto signed the Affordable Housing Act 2024 into law in a ceremony in the statehouse. President William Ruto at an affordable house construction site.  The new law allowed the government to begin the collection of housing levies following a series of legal hurdles.  In November 2023, the High Court declared the housing levy unconstitutional. The levy was first established under the Finance Act.  Despite the declaration that the levy was unconstitutional, the court granted the government stay orders that allowed it to keep collecting the levy up to January 10. Kenyans request refunds for Housing Levy deductions Following the expiry of the stay orders, the government moved to the Court of Appeal seeking an annulment of the High Court's decision to declare the levy unconstitutional. However, the appellate court declined the government's request and declared that the government had no legal framework to collect the levy, particularly in January. Consequently, Kenyans in numbers took to social media to demand refunds from the government for the money the government had collected under the housing levy.  How government circumvented court orders against housing levy Speaking to TUKO.co.ke, Dan Kathali, an economist, said that despite the ruling, the government could find ways around the ruling by passing the new Affordable Housing Bill 2023 currently in parliament. "Despite the ruling, I don't think Kenyans, particularly those on the payroll, because, with the majority MPs in parliament, the KK government will pass the new bill, which will nullify the Finance Act 2023 amendment to Sec84. The government will not deduct the levy until they have passed the bill in parliament, which will address the illegalities pointed out by the High Court. But the government will backdate collections once the bill is passed...Do not expect any refunds," Kathali said. In the now accented Affordable Housing Act 2024, the government placed a section that states that: "Any payment made or action taken under the sections repealed under subsection (1) shall be deemed to have been paid or taken under this Act."  Affordable Housing Act 2024 to be applied retrospectively Speaking to TUKO.co.ke Ndiritu Muriithi, an economist, financial markets expert and former governor of Laikipia county agreed that this section of the Affordable Housing Act implies a retrospective application of the law. Murirthi noted that this denies Kenyans any legal claims for refund deductions that were done in January against the court's ruling and can be challenged in court. "Your interpretation is absolutely correct. And the attempt to apply the law retroactively will be struck down when challenged in court," Murithi told TUKO.co.ke. Okiya Omtata files new suit to stop Affordable Housing Act Busia senator Okiya Omtatah moved to court to stop the implementation of the Housing Levy a day after President William Ruto signed the Affordable Housing Bill into law. Omtatah and other petitioners argued that the Affordable Housing Act is discriminatory and lacks a clear legal framework to collect levies from those in the informal sector. He claimed that the Act violates public land use, as units are built on public land and then allocated to private citizens without involving the National Land Commission.

by  Elijah Ntongai