16 April 2019

Kenya: Confusion as FKE Flashes Out Court Order Barring Housing Levy

The Federation of Kenya Employers (FKE) has disputed a notice published on the immediate implementation of the housing fund levy.

FKE has said it obtained an extension of court orders on April 8, 2019 suspending the implementation of the levy till May 20, 2019 when the case will come up for mention.

"Our attention has been drawn to the public notice published in today's dailies. The notice by the Ministry of Transport, Infrastructure, Housing, Urban Development and Public Works in conjunction with Kenya Revenue Authority has issued a go ahead on the implementation of the Housing Fund Levy with effect May 9, 2019. This is contrary to the Court Orders which are still in force," said FKE Director Ms Jacqueline Mugo.

She added: "The FKE attended court on the April 8, 2019 for the further mention of this case and obtained an extension of the court orders suspending the implementation of the Housing Levy up to May 20, 2019 when the case will come up again for mention for further directions from the court on the hearing and determination of this case."

Housing Ministry and the Kenya Revenue Authority had announced that the housing fund levy "has come into effect", meaning every employed Kenyan must remit 1.5 per cent of their basic salary for April to the National Housing Development Fund.

This caused an uproar from Kenyans on Twitter who were against the implementation of the levy.

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