17 April 2019

Kenya: Temporary Reprieve as Court Suspends Kenyatta's Housing Levy

The Court has temporarily suspended the directive by State to employers to implement the 1.5 per cent housing levy, pending the hearing of a case filed by the Consumers Federation of Kenya (COFEK).

Lady Justice Maureen Onyango of the Employment and Labour Relations Court granted Cofek conservatory orders staying the notice for implementation of the Housing Fund Levy until May 20, 2019, when the matter will be heard.

The State, through the Ministry of Transport, Infrastructure, Housing, Urban Development, and Public Works, had directed employers to deduct 1.5 percent of staff basic salaries and remit it to KRA by May 9. Employers were also expected to match their employee's contribution.

The directive had angered Kenyans on Twitter and they shared their opposition against the levy under the hashtag #ResistHousingFundLevy.

The directive had been termed unconstitutional by the Federation of Kenya Employers( FKE) who said they they had obtained a court order on April 8 suspending its implementation until the mention of the case on May 20.

Most Kenyans celebrated after the fresh order.

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