Nairobi News

Hustle

High Court extends orders suspending Uhuru’s housing levy

The High Court in Nairobi has extended orders barring the government from implementing the 1.5% housing levy until May 27, 2019.

The order was issued on Monday morning by Justice Maureen Onyango to allow for the consolidation of the various cases filed against a plan by the government to deduct a 1.5% levy from the gross salary of employees in the formal sector towards a housing levy fund.

COURT ORDERS

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.

The Labour court on April 17 issued fresh orders temporarily stopping the government from implementing the levy to allow the consolidation of the current case by Cofek.

PUBLIC NOTICE

The government had in April issued a public notice directing employers to deduct and remit the levy by the 9th of every succeeding month.

“The Housing Fund shall be used to finance the Affordable Housing Scheme under the Big 4 Agenda,” the notice reads.

The Jubilee administration is keen on the project as housing is one of the four pillars of President Uhuru Kenyatta’s Big Four agenda.