Court stops government from deducting housing levy from Kenyan workers for a second time

The Employment and Labour Relations Court has further extended orders stopping the government from deducting 1.5 percent affordable mass housing levy.

The government hatched a plan to pinch 1.5 percent of all workers’ salary in the formal sector to set up the housing fund.

Here are some of the organisations opposed to the levy:

  • Consumers Federation of Kenya (Cofek)
  • Trade Unions Congress (TUC)
  • Law Society of Kenya
  • Kenya National Union of Nurses (KNUN).

This case was first filed by COTU. Afterwards cotu had intended to withdraw the case claiming its fears had been adequately addressed.

The  withdrawal was viciously opposed by Federation of Kenya Employers (FKE) who argued that they were sidelined in the negotiations.

The housing tax was to start in May after a public notice by the state in April instructing all employers to deduct and remit the cut every succeeding month by the 9th day.