Human rights organizations have renewed calls to abolish the housing levy, terming it unconstitutional and a burden on Kenyan workers.
In a fresh petition, the Kenya Human Rights Commission (KHRC), Transparency International Kenya, The Institute for Social Accountability, Inuka Kenya Ni Sisi! and Siasa Place argued that the levy unfairly punishes salaried workers while shielding political elites.
They said the deductions are robbing households of much-needed income for food, healthcare, and education. Citing the 2024 KNBS economic report, the groups said the levy has worsened inequality and undermined socio-economic rights.
They also accused the Kenya Kwanza government of turning the levy into a political patronage scheme ahead of the 2027 elections.
“President Ruto announced that 20 percent of houses, about 34,000 units from ongoing projects, would be allocated to teachers after a State House meeting. The deal was sealed through an MoU without board approval, needs assessment or tendering,” the statement read.
The lobby groups also faulted Ruto for pledging houses to Harambee Stars players during the CHAN tournament, calling it misuse of public funds.
The petitioners now want the High Court to halt all deductions and declare the levy unconstitutional.
In October 2024, the court upheld the levy introduced in 2023 as part of President Ruto’s plan to raise revenue, after an earlier ruling had nullified it in November 2023.
Currently, salaried Kenyans contribute 1.5 percent of their monthly pay, matched by employers, to the fund.
President Ruto has remained adamant that the levy will not be scrapped, insisting it will deliver affordable housing for the poor, create jobs, and ease reliance on public debt.
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