The Court has granted the government 45 days to retain the Housing Levy funds as they find a way forward. This is after the lawyers asked the court to prevent kenyans from asking for refunds.
The judges, through a statement by Justice Majanja then granted the government the 45-day period to hold the funds without refunds. During which the conservatory orders would be in force until January 10, 2024 when the 45 day period will elapse.
“An order of stay is hereby issued today pending the filing of a formal application for conservatory orders in the court of Appeal and these orders of stay shall remain in force until January 10, 2024.”
The lawyers argued that should the judges not give these orders, there will be implications as kenyans will be in KRA offices in huge numbers asking for their refunds. Thus asking for a window of 45 days for systems to be adjusted for the Housing Levy funds.
“These are operations that are going to be affected including what date is the effective cessation of the collection. Is it from today or the time the Act was enacted? Tomorrow, there will be an avalanche of Kenyans going to KRA asking for a refund.”
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“They’re not given their money because there is a procedure that has to be followed. They will be in court with contempt applications, so this is a real danger facing everyone in government who must comply with this order.”
” This is the reason why there must be a refund, lest there may be a refund, it cannot be tomorrow. It has to be within a given period of time after systems are adjusted. Advice is given and appropriate measures are given. I don’t agree with the submission given that the law cannot be rectified, that we leave to Parliament. If it has its means to pass it, well and good.”
However, the government through their lawyer, George Murugara, confirmed that they were not pleased with the rulling. They will therefore appeal the Housing Levy verdict at the Court of Appeal.