Civil Society groups have told the High Court that President William Ruto’s mandatory housing levy is driving Kenyans into deeper poverty and using it as a political tool to woo voters.
In their petition, the Kenya Human Rights Commission, Transparency International Kenya, The Institute for Social Accountability,Inuka Kenya Ni Sisi! and Siasa Place describe the levy as illegal,unconstitutional, and socially retrogressive.
They argue it unfairly targets salaried workers already weighed down by statutory deductions,while sparing the political elite and other powerful groups.
Citing data from the Kenya National Bureau of Statistics (KNBS), the petition notes that more than a third of Kenyans live below the poverty line,with food inflation and stagnant wages eroding household incomes.
The Groups argued that the levy further strips workers of scarce disposable income needed for essentials such as food,healthcare, and education.
KHRC said evidence from the KNBS 2024 economic performance report shows the levy’s regressive impact on socio-economic rights.
The construction sector, central to housing delivery, contracted by 0.7 percent in 2024,reversing a 3 percent growth in 2023. KNBS attributes the downturn to higher costs of input,reduced private investment, and the levy’s drain on household spending. Cement consumption fell 7.2 percent to 8.5 million tonnes, the steepest drop in two decades,while steel imports dipped 12 percent. Employment in construction shrank 4.2 percent,contrary to claims by the regime that the levy is creating jobs.
The petitioners also accuse the Kenya Kwanza regime of turning the fund into a vehicle for political patronage.
They said President Ruto announced that 20 percent of houses, about 34,000 units from 170,000 ongoing projects, would be allocated to teachers after a meeting at State House.
According to the Petitioners, the deal was formalised through an MoU without Board approval, but it needs assessment or public tendering.
KHRC and the other petitioners said Ruto further promised houses to Harambee Stars players during the CHAN football tournament.
“These acts suggest misuse for patronage ahead of the 2027 elections,” KHRC said.
The petitioners want the High Court to suspend all deductions and declare the levy unconstitutional.
KHRC Chairperson Maina Kiai during past event. PHOTO/ K24 X