A major legal battle over President William Ruto’s affordable housing programme has taken a dramatic turn, with the Court of Appeal reportedly delivering a decision that strengthens the legal foundation of the government’s controversial housing policy. Read Full Article Here
The reported ruling upholds the Affordable Housing Act as constitutional and dismisses dozens of cases that had challenged the legislation and the deductions connected to the housing programme.
If confirmed in the final court record, the decision would provide significant legal backing to one of Ruto’s flagship programmes.
The Affordable Housing Act was enacted in March 2024 after an earlier High Court ruling raised constitutional concerns about the previous housing levy.
The new legislation established a broader legal framework for the programme and introduced the Affordable Housing Levy.
Under the current framework, employees contribute 1.5 per cent of their gross salary, while employers make a matching contribution. The funds are intended to finance affordable and institutional housing projects.
The latest reported development therefore comes at a critical moment for the administration, which has continued to defend the housing programme despite persistent legal and public controversy.
However, the programme still faces questions beyond its constitutional status.
A recent Parliamentary Budget Office report cited a Sh118.3 billion financing gap, while the government had collected Sh205.7 billion through the levy against projected programme requirements.
For Ruto’s administration, the reported court outcome could remove one of the major legal uncertainties surrounding the programme, while opponents of the levy may now have to reassess their legal strategy.
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