[Kenya] Unpopular payroll levy overturned

On November 28, a Kenyan court ruled that a salary levy introduced by President William Ruto was illegal. The decision is a setback to the government's intention to boost state coffers, Africanews reports.

In June, a law allowing a 1.5 per cent levy on the salaries of all Kenyan taxpayers, including employers, was passed to finance a low-cost housing programme.

But now three judges of the Nairobi High Court have reportedly ruled that the measure was not part of a complete legal framework and that the exclusion of informal workers was "discriminatory and irrational".

"An order has been made prohibiting the collection of (...) the fees known as the Affordable Housing Act", Justice David Majanja said.

The levy was part of a budget bill that introduced a number of new taxes for Kenyans, against a backdrop of already high inflation.

Resentment over rising prices - especially for basic necessities such as food and fuel - led to a series of sometimes deadly protests against the Ruto government earlier this year.

Kenya is battling galloping inflation and a steeply declining currency, which has reportedly caused the cost of repaying its debt to soar.

Source: Africanews

(Quote via original reporting)

On November 28, a Kenyan court ruled that a salary levy introduced by President William Ruto was illegal. The decision is a setback to the government's intention to boost state coffers, Africanews reports.

In June, a law allowing a 1.5 per cent levy on the salaries of all Kenyan taxpayers, including employers, was passed to finance a low-cost housing programme.

But now three judges of the Nairobi High Court have reportedly ruled that the measure was not part of a complete legal framework and that the exclusion of informal workers was "discriminatory and irrational".

"An order has been made prohibiting the collection of (...) the fees known as the Affordable Housing Act", Justice David Majanja said.

The levy was part of a budget bill that introduced a number of new taxes for Kenyans, against a backdrop of already high inflation.

Resentment over rising prices - especially for basic necessities such as food and fuel - led to a series of sometimes deadly protests against the Ruto government earlier this year.

Kenya is battling galloping inflation and a steeply declining currency, which has reportedly caused the cost of repaying its debt to soar.

Source: Africanews

(Quote via original reporting)