Court Extends Orders Blocking Gov’t from Imposing 1.5% Affordable Housing Levy on Workers

The High Court has extended orders blocking the government from implementing the 1.5 percent housing levy until May 27th.

In a ruling on Monday, Justice Maureen Onyango has extended the orders to give room for the consolidation of different cases seeking to stop the government from imposing the levy on workers.

Under the plan, the government is seeking to deduct 1.5 percent levy from all employees’ salaries. The government says money collected under the levy will be used to create a housing fund.

However, various groups including the Central Organization of Trade Unions (COTU), Trade Union Congress of Kenya, Consumers Federation of Kenya (COFEK) and the Federation of Kenyan Employers (FKE) have filed cases challenging the levy.

Last month, the government issued a public notice directing employers to deduct and remit the levy by the 9th of every succeeding month as from May.

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

Under the housing scheme, President Kenyatta’s administration seeks to put up 500,000 low-cost houses.