A Kenyan court has ruled that the housing levy introduced by President William Ruto's administration is constitutional. This ruling allows the government to proceed with the levy, which had previously faced legal challenges and was deemed illegal in a prior court decision. The levy is part of a broader initiative aimed at funding affordable housing in the country.

Kenya's High Court issued a ruling on Tuesday affirming the legality of a contentious housing levy that was introduced last year as part of efforts to strengthen public finances. This decision enables President William Ruto's government to proceed with the housing scheme, following a prior court ruling in November 2023 that had deemed it illegal.

The levy, which amounts to 1.5% of the salaries of all taxpaying Kenyans and is to be matched by employers, was enacted in June of the previous year to support an affordable housing initiative. However, it faced numerous legal challenges.

In delivering the verdict, Judge Josephine Mongare, representing a three-member panel, stated, "It is our finding that the levy is properly in place and in accordance with the constitution."

The imposition of this levy was part of a broader piece of legislation that also increased taxes on various goods, exacerbating the financial strain on Kenyans already grappling with high inflation rates. The Finance Act of 2023 aimed to generate over $2.1 billion to manage Kenya's substantial public debt, which totals $78 billion.

Public discontent over the tax increases and soaring prices, particularly for essential items like food and fuel, ignited a series of protests against Ruto's administration last year, some of which turned violent. Protests, primarily led by younger generations, also emerged earlier this year in response to the Finance Act of 2024, which proposed additional unpopular tax hikes.

In defense of the housing fund, Ruto asserted that it is intended to provide homes for the impoverished, create job opportunities, and alleviate the need for public borrowing.