President William Ruto’s June salary levy was declared unlawful by a Kenyan court on Tuesday, November 28, 2023, severely undermining the government’s plan to increase state revenue.
In order to fund a low-cost housing program, a law allowing a 1.5% levy on the salaries of all Kenyan taxpayers, including employers, was passed in June.
The Nairobi High Court’s three judges found that the measure was “discriminatory and irrational” because it excluded informal workers and did not form part of a comprehensive legal framework.
“An order has been made prohibiting the collection of (…) the fees known as the Affordable Housing Act”, said Justice David Majanja.
In addition to several other new taxes, the levy was a part of a budget bill that increased Kenyans’ already high rates of inflation.
Anger over escalating costs, especially for necessities like food and gasoline, sparked a string of occasionally lethal demonstrations against William Ruto’s administration earlier this year.
East Africa’s powerhouse, Kenya, is facing crippling inflation and a collapsing currency, which has driven up the cost of repaying its debt.
Ref: AFP
