The Court of Appeal in Kenya has upheld the suspension of the controversial housing levy, providing a relief for citizens and dealing a setback to the government’s plans. This decision follows a previous ruling by the High Court, and the appellate judges underscored the importance of addressing constitutional concerns before allowing any deductions. The court emphasized the potential irreversible consequences of proceeding with the deductions without resolving constitutional issues and stated that it is in the public interest to hear the appeals first.

The Attorney General and the National Treasury sought to overturn the High Court’s decision, arguing that the suspension could lead to a severe budgetary crisis and widespread confusion. However, the Court of Appeal, led by Justices Lydia Achode, John Mativo, and Gatembu Kairu, rejected the government’s application. The judges noted that public interest favors not granting the stay, expressing concerns about the potential irreversible consequences and highlighting the need for a proper determination of the appeal before any action is taken.

The government had raised concerns about breaching contracts related to the affordable housing project if the housing levy deductions were halted. Nevertheless, the appellate judges dismissed this argument, stating that no valid evidence or contracts were presented to support such a claim. The ruling underscores the significance of constitutional considerations and public interest in deciding matters affecting citizens and government initiatives.