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Kenya's Court of Appeal Upholds Affordable Housing Act and 1.5% Housing Levy

Courtroom-sketch editorial illustration of an archival February 2025 view of the Judiciary of Kenya building in Nairobi, its columned central portico, arched windows and tiled roof facing a paved plaza where a pedestrian walks past the seated Jomo Kenyatta statue on its stone plinth, with office towers behind; institutional context for Kenya's courts, not the September 25, 2026 Court of Appeal ruling on the housing levy, rendered in warm ochre and slate-blue pastel strokes.

Kenya's Court of Appeal on Friday, September 25, dismissed appeals against the Affordable Housing Act 2024, ruling that the law is constitutional and that the 1.5% levy on gross salary, matched by employers, can continue. "Having considered the submissions made, we find no merit in this appeal, which we hereby dismiss," the judges said. The court held that the Kenya Revenue Authority may lawfully collect the levy and that allocating public land for housing without National Land Commission approval would be unlawful. It found the Commission on Revenue Allocation should have been consulted before Parliament debated the bill, but left the Act in force. Appellants included Busia Senator Okiya Omtatah.

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