Court of Appeal declares Affordable Housing Act constitutional
Court of Appeal has upheld the Affordable Housing Act as constitutional, dismissing 42 cases challenging the law that established the Affordable Housing Levy
The Court of Appeal has upheld the Affordable Housing Act as constitutional, dismissing 42 cases challenging the law that established the Affordable Housing Levy.
President William Ruto signed the Affordable Housing Act into law on March 19, 2024, during a ceremony at State House, Nairobi, paving the way for the implementation of the levy.
Under the Act, employers and employees are required to contribute 1.5 percent of an employee’s gross salary towards the Affordable Housing Programme, one of the key projects under President Ruto’s housing agenda.
The Court of Appeal’s decision comes moments after the court also dismissed Senator Okiya Omtatah’s appeal challenging the construction of affordable housing on county and ministry land, ruling that there had been adequate public participation.
In October 2024, the High Court ruled that the Affordable Housing Act, 2024 had been properly enacted and was in accordance with the Constitution, allowing the government to proceed with the programme.
A three-judge bench comprising Justices Olga Sewe, John Chigiti and Josephine Mong’are found that there had been adequate public participation and that due process was followed in establishing the Affordable Housing Fund.
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The ruling followed six petitions filed at the High Court challenging the legality of the Affordable Housing Levy and the establishment of the housing fund.
The legal challenges were later taken to the Court of Appeal, with Katiba Institute filing an appeal challenging the constitutionality of the Affordable Housing Act, 2024.
The latest Court of Appeal ruling now upholds the legislation after the bench considered the various challenges brought against the Act.
This comes even as the government faces a funding shortfall in the Affordable Housing Programme, with the mandatory 1.5 percent Housing Levy falling short of the amount needed to meet its target of constructing 200,000 units annually.
Housing Principal Secretary Charles Hinga said earlier this month that the levy currently raises about Ksh6 billion every month, but noted that the collections alone cannot sustain the programme.
Hinga said the government is exploring long-term financing options with international development partners, including the World Bank, to bridge the funding gap and support the programme’s implementation.
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