Lawyers sue CS Charity Ngilu over new 0.5pc construction levy

NAIROBI: The Law Society of Kenya (LSK) has sued Lands Cabinet Secretary Charity Ngilu over a gazette notice allowing 0.5 per cent levy on constructions exceeding Sh5 million.

The lawyers' body is required to pay the National Construction Authority (NCA), who are also respondents in the matter, Sh6 million in construction fees.

The levy has now been in place for the past five months.

The legal body now wants the court to stop the construction authority from collecting the Sh6 million under regulation 25 of the National Construction Authority Regulations, 2014.

LSK further wants the court to issue orders suspending the operations of the same regulations, pending hearing and determination of the case.

LSK also challenges regulation 25 that calls for the 0.5 per cent levy, saying it was null and void since its introduction offends certain provisions of the Constitution.

The legal body further maintains there were no consultations held by the Lands Cabinet secretary with the public or relevant stakeholders prior to the imposition of the charges.

NO CONSULTATION

"There was no consultation with the public by the minister for lands and NCA with county governments as mandated by Article 185 of the Constitution," the agency said.

In an affidavit, LSK Chief Executive and Secretary Apollo Mboya said there have been various concerns raised by the Nairobi County Government that it was not consulted prior to the introduction of the construction levy.

"Article 185 (4)(a) and (b) provides that county assemblies are required to approve plans and policies for the management of county resources and development and management of infrastructure," Mboya said in his sworn affidavit.

Regulation 25 of the National Construction Authority Regulations, 2014 requires a person with a construction exceeding Sh5 million to notify the authority and provide details of the job to be undertaken.

Defaulters risk being fined or imprisoned, while the construction authority recovers the funds after three months.

NCA further has the mandate to consider the final value of completed work.