Former Prime Minister and Azimio Leader Raila Odinga urged employers to withhold remittances to the housing levy after the High Court’s ruling on November 28.
Speaking in Nairobi on Wednesday, November 29, the opposition chief argued that the court had already declared the levy unconstitutional.
As such, he added that continued remittance would amount to acting unconstitutionally.
“The matter still remains unconstitutional and therefore I would urge all employers to immediately stop paying anything because you will be acting unconstitutional,” Raila Odinga stated during the Azimio presser.
“The court made a very fundamental pronouncement that this matter is unconstitutional.”
Elsewhere, representatives of workers voiced their reservations against the stay issued by the High Court on its ruling that declared the levy unconstitutional.
Trade unions echo Raila
The Kenya Trade Union Congress and Universities’ Academic Staff Union (UASU) were among the trade unions to react to the stay as they protested the continued implementation of the levy to January 2024.
Charles Mukhwaya, the Secretary General of the Trade Union Congress, on his part, urged employers to cease remitting the funds.
Also Read: Court Declares Housing Levy Unconstitutional
The Kenya Medical Practitioners and Dentists Union (KMPDU) also pronounced itself on the matter stating that it was upon all employers and government to respect the ruling.
UASU leaders also commented stating that they did not expect universities to continue deducting the funds.
Their remarks came even as the government maintained that the levy would be in place until January 10, 2024, according to the court ruling.
In a notice issued on Wednesday, November 29, the Lands and Urban Planning Cabinet Secretary Alice Wahome sounded a warning to all employers regarding remittance of the funds.
Wahome in the statement warned that failure by the employers to remit the funds as stipulated would attract penalties of up to 2% of the money supposed to be remitted.
Also Read: CS Alice Wahome Warns Kenyans on Housing Levy Payment
Ruto’s options to salvage housing fund
Meanwhile, focus will shift to the Kenya Kwanza government’s next move in response to the High Court ruling that quashed the Housing Levy.
President William Ruto has on several occasions affirmed the importance of the housing project as part of the government’s agenda to create jobs and upgrade housing standards.
Speaking on Tuesday, November 28, Ruto hinted at possible review of the Finance Act to create the necessary framework for the housing levy as highlighted in the court ruling.
His stance was later echoed in the Chairperson of the National Assembly Finance Committee Kuria Kimani‘s statement noting that he was waiting for a proposal from the executive to initiate the amendment process on the way to make the fund compliant.
