The Kenya Human Rights Commission (KHRC) and a coalition of civil society groups have taken their fight against the controversial housing levy to the High Court, arguing that the mandatory deductions are deepening poverty and breaching the Constitution.
The petition, filed on Friday, could derail President William Ruto’s flagship affordable housing project, which has been central to his administration’s economic plan.
“Unlawful and Retrogressive”
KHRC, alongside Transparency International Kenya, the Institute for Social Accountability, Inuka Kenya Ni Sisi, and Siasa Place, branded the levy “unlawful, unconstitutional, and socially retrogressive.”
“The Levy, as structured and implemented, contravenes multiple constitutional provisions, leading to economic retrogression, politicisation of public resources, lack of transparency, unfair administrative actions, and discriminatory practices,” the petition reads in part.
The groups argue that the 1.5 per cent salary deduction, matched by employers, has failed to advance the right to housing and instead burdens already overtaxed workers. They added that it unfairly targets salaried Kenyans while leaving out millions in the informal sector.
Political Patronage Claims
The petition also accuses the government of turning the levy into a political tool. They cited President Ruto’s recent pledge that 20 per cent of houses from ongoing projects would be allocated to teachers and Harambee Stars players, calling it an act of political favouritism.
Previous Court Ruling
In October 2024, a three-judge bench upheld the constitutionality of the housing levy after ruling on challenges related to public participation, property rights, and devolution.
KHRC, however, insists its petition raises new issues, particularly around economic impact and fairness.
Economic Pressures
Citing the Kenya National Bureau of Statistics (KNBS) Economic Survey 2025, the petitioners noted that more than a third of Kenyans live below the poverty line, while high food inflation and stagnant wages have left households struggling.
They pointed to data showing that the construction sector contracted by 0.7 per cent in 2024, a sharp reversal from 3.0 per cent growth the previous year. According to the petition, this decline is partly due to the diversion of disposable income through the levy, higher input costs, and reduced private investment.
What They Seek
The lobby groups want the High Court to suspend the deductions and declare the housing levy unconstitutional. They have named the Treasury Cabinet Secretary, the Lands Cabinet Secretary, the Affordable Housing Board, and the Kenya Revenue Authority as respondents in the case.
The government has yet to respond formally, but the petition sets the stage for another major legal battle over one of Kenya Kwanza’s most high-profile policies.