Kenyan Court of Appeal upholds the Affordable Housing Act and statutory levy

Add as a preferred source on Google The Court of Appeal confirmed the legal validity of the Affordable Housing Act, securing continuous funding for ongoing residential construction projects. By Faith Benter Editor | Quantity Surveyor

The Court of Appeal has upheld the constitutionality of the Affordable Housing Act of 2024, dismissing forty‑two consolidated petitions that sought to strike down the legislation and its statutory payroll levy. The appellate ruling provides crucial legal certainty for one of the national government's primary infrastructure and socio‑economic programmes, allowing mandatory payroll deductions to continue uninterrupted.

Under the validated framework, formal‑sector employees contribute 1.5 percent of their gross monthly salary toward the Affordable Housing Fund, with employers matching the contribution with an additional 1.5 percent. These contributions are earmarked for the construction of affordable homes across Kenya.