Kenyans will continue to contribute 1.5 per cent of their salary towards the housing levy for another month.

A three-judge Bench comprising of Court of Appeal Justices Lydia Achode, John Mativo and Mwaniki Gachoka ordered the maintenance of the status quo on the collection of housing levy and other taxes introduced by the Finance Act 2023 until January 26.

The judges said the government will continue to collect the tax until January 26 when they will issue a substantive ruling on five appeals filed on whether to suspend the High court decision on Finance Act 2023 pending the hearing of the appeals.

The Court of Appeal orders suspending the implementation of the High court Judgement that declared the housing levy unconstitutional were issued yesterday after a successful application by Cabinet Secretary National Treasury and Planning Njuguna Ndungu, Attorney General Justin Muturi and Kenya Revenue Authority (KRA).

“Upon hearing the parties, all the applications are consolidated as they arise from the same judgment of the High Court dated November 28, 2023. Civil Application No. E577/2023 is designated as the lead file. The ruling on these consolidated applications will be delivered on January 26, 2024.”

“In the meantime, the status quo obtained as of today shall be maintained until the delivery of the ruling,” the Judges ruled.

On Wednesday’s hearing, the Court of Appeal heard oral submissions from the applicants who included the Attorney General, KRA, Treasury and Parliament, with respondents led by Busia Senator Okiya Omtata, the Law Society of Kenya (LSK) and human rights groups.

The government lawyers led by Githu Muigai put a spirited fight to have the stay order issued to allow for the deductions to continue until their appeal is determined.

Githui told the appellant judges if the High Court orders that were to lapse on January 10 were not extended they will be serious crisis and a lacuna on how will the government will collect its taxes to finance major projects and pay salaries.

“Unless this court was to protect the Kenya public,our appeal will be rendered nugatory. The consequences are unimaginable, legal constitutional crisis and the chaos that would follow are without precedent in the history of our country,” Githui stated.

However, Omtatah opposed the request for stay orders arguing that by tabling the Affordable Housing Bill, 2023, the State inadvertently conceded that there was indeed no legal framework under which the Housing Levy operates under the Finance Act, 2023.

The government argues that President William Ruto’s programme was beneficial to Kenyans owing to the jobs created.