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High Court Further Suspends Implementation Of 1.5 Percent Housing Levy To June 10

Housing Levy
[PHOTO/ COURTESY]

The High Court has further suspended implementation of 1.5 per cent housing levy until June 10, to consolidate 11 cases challenging it.

Issuing the ruling on Monday, Justice Maureen Onyango directed that the cases be heard together on June 10.

Various parties including the Central Organization of Trade Union (COTU), Trade Union Congress of Kenya, Consumers Federation of Kenya (COFEK) and the Federation of Kenyan Employers (FKE) have filed suits challenging the levy.

Read: Court Extends Ruling On Implementation Of 1.5% Housing Levy Fund To May 27

Previously, the Labour Court had suspended the levy to today, following an array of cases filed in court challenging it validity.

The ministry of transport, infrastructure, housing, urban development and public works in conjunction with the Kenya Revenue Authority (KRA) announced implementation of the housing levy in April , and was set to begin in May.

In the scheme, both the employer and the employee shall each contribute 1.5 percent of the employee’s monthly basic salary.

Read: Housing Levy: Government To Use Lottery System To Allocate Houses

“The employers are required to deduct and remit the levy together with other statutory levies from both the employer and the employee but the 9th of each succeeding month together with other payrol statutory deductions,” announced the government.

The levy was introduced in 2018 through the controversial Finance Act 2018, that was opposed to the larger section of Kenyans.

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Francis Muli

Written by Francis Muli

Senior reporter at Kahawa Tungu, Muli has a passion for human interest stories. He believes in unearthing societal rots that have been hidden from the public eye. He has also carved himself a niche in writing business stories. He has worked for various organisations including Kenya Television Service, Business Today among others. Follow him on Twitter @FmuliKE.
Email: mulifranc2@gmail.com

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