Blow to Ruto as New Petition Filed Against Housing Levy

The Kenya Human Rights Commission (KHRC) and a coalition of lobby groups have filed a petition at the High Court seeking to halt President William Ruto’s affordable housing programme, in what could become a major setback for one of his flagship projects.

In the petition lodged on Friday, the groups argue that the Affordable Housing Levy has plunged many Kenyans into economic hardship while being exploited as a political tool to rally voter support. The case has been filed jointly by KHRC, Transparency International Kenya, the Institute for Social Accountability, Inuka Kenya Ni Sisi, and Siasa Place.

The lobby groups described the levy as unlawful, unconstitutional, and socially retrogressive. They told the court that the 1.5 per cent mandatory deduction unfairly targets salaried workers who are already weighed down by other statutory deductions, while millions in the informal sector remain outside the tax net.

According to the petitioners, the levy has not advanced the progressive realisation of the constitutional right to housing since its introduction, but has instead worsened the plight of over 20 million Kenyans working outside formal employment. They maintain that the deductions have deepened inequality and eroded citizens’ economic rights.

“The petitioner seeks the declaration of Sections 3, 4, 5, and 12 of the Act as unconstitutional, null, and void ab initio. These sections operationalise the Affordable Housing Levy, which imposes a mandatory 1.5 per cent deduction on employees’ gross salaries, matched by employers, to fund the National Housing Development Fund,” reads part of the court papers.

The petition further contends that the levy, as structured, violates multiple constitutional provisions. It is accused of leading to economic retrogression, politicisation of public resources, unfair administrative actions, and discriminatory practices. The groups argue that its implementation lacks transparency and accountability, exposing workers’ money to misuse and political manipulation.

This fresh legal challenge adds to the growing public debate around the viability of the housing programme. The Ruto administration has defended the levy as a necessary measure to provide affordable housing and create jobs, but critics say it burdens an already overstretched workforce and undermines social equity.

The High Court is expected to consider the matter in coming weeks, with the potential to deliver a ruling that could reshape the future of the government’s affordable housing agenda.