Kenya: Supreme Court to Hear Fresh Challenge to Affordable Housing Levy

What the report says

Kenya’s Supreme Court is set to hear a new appeal challenging the country’s affordable housing levy, keeping alive a legal dispute over a key financing pillar of President William Ruto’s housing agenda. The case was brought by Peter Okiro, who is asking the court to overturn an earlier Court of Appeal ruling that upheld the Affordable Housing Act, 2024 and the 1.5 per cent levy tied to it.

According to Capital FM’s report carried by AllAfrica, the Supreme Court issued procedural directions on November 11, 2026. Okiro was ordered to serve the petition on the respondents the same day, with replies due within 14 days and any rejoinder due seven days later. The matter is listed for a virtual mention on December 4, 2026, when the court is expected to give further directions. The court did not suspend the levy and has not yet ruled on the substance of the appeal.

The fresh petition follows a September 25, 2026 Court of Appeal decision in which a five-judge bench dismissed 42 consolidated appeals against the law. That court said the levy was a lawful tax measure serving a public purpose and rejected claims that it unfairly burdened salaried workers or violated property rights. As background, the dispute began after the High Court struck down an earlier version of the levy in 2023, prompting Parliament to pass new legislation in 2024. The latest appeal adds more uncertainty to a programme that depends on continued payroll and income deductions.