Housing Levy: employers say govt notice is illegal

The Federation of Kenya Employers has reacted to the government notice directing employers to implement the 1.5% Housing Levy effective May 9.

The proposals were contained in the Finance Act 2018 as a way of supporting the affordable housing pillar of the government but has been opposed by stakeholders and the geberal public.

A statement from FKE contended that the notice in today’s dailies was illegal since there was an extension to the court orders stopping the implementation of the levy.

“Our attention has been drawn to the Public Notice published in today’s Daily Nation Newspaper under the headline Housing Fund Levy,” said FKE ceo, Jacqueline Mugo.

“The notice by the Ministry of Transport, Infrastructure, Housing, Urban Development and Public Works in conjunction with Kenya Revenue Authority has issued a go-head on the implementation of the Housing Fund Levy with effect from 9th May 2019. This is contrary to the Court Orders which are still in force.

“The Federation of Kenya Employers (FKE) attended Court on the 8th of April 2019 for the further mention of this case and obtained an extension of the Court Orders suspending the implementation of the Housing Levy upto the 20th of May 2019 when the case will come up again for mention for further directions from the Court on the Hearing and determination of this case.

“The Gazette Notice is therefore unlawful and we shall keep you posted on any further developments.”


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