HOUSING FUND

Courts extends suspension of house levy

In Summary

• The High Court again extends the suspension on housing Levy fund until June 10, 2019.

• The Federation of Kenya Employers also rejected the levy saying funding the project will be burdensome to the employees.

A housing projects for civil servants
A housing projects for civil servants
Image: FILE

The High Court has once again extended the suspension of the Housing Levy fund until June 10, 2019.

Labour Court Justice Maureen Onyango ordered 11 petitioners who are challenging the levy be consolidated to be heard together.

Onyango will also hear an application on contempt of court filed by FKE against KRA.

 
 

The Court last month temporarily suspended deduction of 1.5 per cent of employees’ salaries towards the Housing Fund until May 20.

Justice Onyango issued temporary orders suspending implementation of a Gazette Notice by the Ministry of Transport until a case opposing it is heard.

The Federation of Kenya Employers also rejected the levy saying funding the project will be burdensome to the employees.

Executive director Jacqueline Mugo said the introduction of the housing development levy was rushed since employers and employees were not consulted.

"The deduction of the levy will have far-reaching negative implications on the formal and informal sectors and at the same time undermine the rights and fundamental freedoms of employers and employees," Mugo said.

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