Monday, June 17, 2024

FKE advises employers to cease deducting housing levy

The Federation of Kenya Employers (FKF) has has now advised its members who are employers to stop the deduction of housing levy.

The statement comes hours after the court declared the levy unconstitutional much to the happiness of many Kenyans.

FKE Executive Director Jacqueline Mugo called on employers to stop making the deductions until when another ruling in favour of President William Ruto’s brain project is allowed to continue.

“Your attention is drawn to a Ruling delivered today January 26th, 2024, in the Court of Appeal dismissing a Stay Application where the Government sought to continue collecting the Housing Levy until the appeal it filed is heard and determined by the Court of Appeal.

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.” she said

The High Court had already ruled that the fund was unconstitutional given the legal framework it was formed, a decision that was further confirmed by the Court of Appeal which cited public interest in its management.

The trial court held that the housing levy was introduced without a legal framework. It also held that the levy was targeting a section of Kenyans. In our view, public interest lies in awaiting the determination of the appeal.

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.” said the Court of Appeal

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