In a recent development, a panel of three judges has granted the government's request for a provisional order, allowing the retention of Housing Levy funds for a period of 45 days. This decision comes in response to the earlier declaration of the Housing Levy as unconstitutional on Tuesday.

The ruling stipulates that the conservatory orders will remain in effect until January 10, 2024. Justice David Majanja, delivering the decision, stated, "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."

This implies that Kenyan citizens will continue to pay the Housing Levy until the specified date.

In the aftermath of the ruling, government representative George Murugara confirmed the intention to appeal the Housing Levy verdict at the Court of Appeal. The government's legal team sought the 45-day period to regularize the Housing Levy by presenting it to Parliament and subsequently enacting it into law.

Explaining the potential repercussions of denying the plea, Murugara emphasized the practical challenges, stating, "There will be an avalanche of Kenyans going to KRA asking for a refund. 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."

He further clarified that granting the 45-day window would not nullify the earlier ruling that declared the levy unconstitutional.

However, petitioners argued that the government should refund the funds acquired through the levy, which was deemed illegal by the High Court judges. The judges had invalidated certain sections of the Finance Act 2023, including the Housing Levy provision, citing it as discriminatory, irrational, arbitrary, and contrary to the Constitution.