Employers Take Stance on Housing Levy After Court Decision

The Federation of Kenya Employers (FKE) has asked employers across the country to honor court orders halting the implementation of the Housing Levy. 

FKE made the move following the Court of Appeal’s decision barring the state from deducting housing levy from Kenyans.

“In light of the court order, we advise our members, not to deduct the levy unless the Court of Appeal rules otherwise after the hearing of the substantive appeal or in the alternative, should the government challenge the said ruling in the Supreme Court, the said Court reverses the ruling delivered today,” read part of the statement.

The Federation further stated that it shall continue to monitor any developments in the Housing Levy matter.

It made an appeal to employers to stay informed on the issue and contact the Federation in case of queries.

“We encourage you to stay informed on this issue and advise your employees accordingly. If you have any questions or concerns regarding the implementation of this advisory, please do not hesitate to contact us,” added FKE.

Housing Levy

The government was deducting 1.5 per cent from each employee with employers matching with an equivalent amount.

Also Read: Blow to Ruto as Court of Appeal Declines to Lift Suspension of Housing Levy

That has however been grounded to a halt after the Court of Appeal declined to allow the collections to continue in a January 26, 2024, ruling.

The state had made an appeal through two applications seeking to suspend the November 28 High Court judgement that had declared the Housing Levy unconstitutional.

A three-judge bench of the court argued that the move safeguards public interest should the outcome of the appeal sustain the decision of the High Court.

“This is because if the stay sought is granted at this stage, should the appellate Court affirm the impugned decision, then some far-reaching decisions that will have been undertaken pursuant to the impugned laws may not be reversible,” the judges explained.

Ruto Takes Stance

Also, following the ruling, President William Ruto declared that his government will be challenging the appellate court’s decision.

The head of state was speaking during a public address in Meru today as he defended the housing program.

Also Read: Ruto to Raid Pay slips Again as Court Allows New Health Insurance

“We are going to appeal the decision. We will make the requisite law so that our agenda to create employment for jobless youths who have finished school but have nowhere to go is realized through the housing projects,” said Ruto.

Ruto further defended the program describing it as the cornerstone of his plan to create employment for jobless Kenyans.

The head of state said the Housing projects across the country have absorbed various skilled Kenyans into the working bracket enabling them to earn a living.

“It is the first time in the Republic of Kenya that we have an administration that has a clear and demonstrable plan to create jobs for millions of young Kenyans, “he added.