LSK asks court to quash Ngilu levy on new buildings
Land secretary Charity Ngilu says dialogue is still a valid option that can save Makueni County from a possible by-election. PHOTO | FILE |
What you need to know:
LSK, which is faced with a Sh6 million bill for its proposed arbitration centre building, Tuesday filed a suit seeking a reversal of the rules introduced by Ms Ngilu through a legal notice published on June 6.
Under the June legal notice, all construction works whose total cost exceeds Sh5 million are subject to a 0.5 per cent charge.
The lobby group would be slapped with a Sh6 million bill for erecting its Sh1.2 billion arbitration centre along Mombasa Road.
The Law Society of Kenya now wants the construction levy introduced earlier this year by Land secretary Charity Ngilu quashed.
The lawyers’ lobby group, which is faced with a Sh6 million bill for its proposed arbitration centre building, Tuesday filed a suit seeking a reversal of the rules introduced by Ms Ngilu through a legal notice published on June 6.
Also enjoined in the suit are the National Construction Authority (NCA) and Attorney- General Githu Muigai.
Under the June legal notice, all construction works whose total cost exceeds Sh5 million are subject to a 0.5 per cent charge. The lobby group would be slapped with a Sh6 million bill for erecting its Sh1.2 billion arbitration centre along Mombasa Road.
The lobby group claims the rules were introduced without consulting the public, stakeholders and county governments as provided for in the Constitution.
“The construction levy has been in place for the last five months and collection of the 0.5 per cent fee is ongoing. There was no consultation by the Land CS with the public and relevant stakeholders. Ms Ngilu and the NCA, in imposing and collecting the levy, prejudice a citizen’s right to housing,” said LSK.
Certain functions such as housing, street lighting, habours and some roads were devolved to the counties and the LSK now argues that only they can impose such a levy on condition that they offer a service in return.
The lawyers’ body claims that Sections 25 and 31 of the National Construction Act which governs the collection of the levy are in direct conflict with the Constitution hence should be set aside by the court.
LSK chief executive Apollo Mboya has said in suit papers that should they be forced to pay the Sh6 million, they would be forced to recover it from members, thus adversely effecting the group’s finances.
The lack of public participation in imposing the levy makes it null and void, LSK argues.
“The Constitution provides that the national or county governments may impose charges for services. The construction levy imposed by the minister is in violation of this constitutional provision as NCA does not provide any service for the levy demanded,” said Mr Mboya.
The new laws have also come under attack at City Hall after governor Evans Kidero last month called on the national government to revoke the rules governing the collection of the fee for lack of consultation with counties.
Dr Kidero said in a petition to the government that the levy would hit property developers hard and dampen investor confidence.
