Supreme court to hear fresh challenge to affordable housing levy

The Supreme Court of Kenya has agreed to hear a fresh legal challenge to the country's affordable housing levy, reigniting debates over its constitutionality. Peter Okiro has filed an appeal petition questioning the September 2026 ruling by the Court of Appeal that backed the tax. The government's affordable housing program, financed through a 1.5 per cent housing levy, is at the center of this dispute.

The Supreme Court ordered Okiro to serve the petition to the respondents by the end of November 11, 2026, with a 14-day response window. Okiro can file a rejoinder within seven days if needed. The matter is set for a virtual hearing on December 4, 2026. The case follows a September 25, 2026 Court of Appeal decision that upheld the legislation, finding the levy a lawful exercise of the government's taxation powers.

The judges dismissed arguments that the levy infringed upon property rights, as employees contribute towards a housing program from which they might not benefit directly. The Affordable Housing Act, 2024, aims to provide accessible and adequate housing for citizens. The levy, collected from both formal and informal sector workers, funds President William Ruto's affordable housing initiative.