FKE to employers ‘stop deducting housing levy’

The Federation of Kenya Employers (FKE) has now advised its members to immediately cease deducting the housing levies from their employees’ salaries after a court ruling declared it unconstitutional.

In a ruling delivered on Friday, Court of Appeal judges Lydia Achode, John Mativo and Paul Gachoka cited public interest in the matter, underscoring the High Court ruling that the housing levy was introduced without a legal framework.

FKE Executive Director Jacqueline Mugo, in a subsequent statement, told employers to only resume collecting the levy after another ruling to that effect is issued after the court hears and determines the government’s appeal.

“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,” said Ms. Mugo.

“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.”

The Court of Appeal judges, in its ruling, stated: “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.”

Citizen Digital.