The government will start deducting the mandatory 1.5 per cent housing levy from all employees’ monthly basic salary effective this month.
In an advert in Tuesday’s local dailies, the government has instructed employers to remit the levy with other statutory levies by 9th of every succeeding month.
The first contribution shall be due by 9th May 2019. The housing fund shall be used to finance the affordable housing scheme under the government’s big four agenda.
Under the scheme, both the employer and employee shall each contribute 1.5 per cent of the monthly basic salary.
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However, the sum of the total monthly contributions shall not exceed 5,000 shillings.
The government says voluntary contribution may also be made to the scheme at a minimum of 200 shillings per month. The deduction became law by the enactment of the Finance Act, 2018 relating to housing fund levy.
Meanwhile, the Federation of Kenya Employers has says the notice in the dailies was illegal since there was an extension to the court orders stopping the implementation of the levy.
“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.” said FKE CEO, Jacqueline Mugo.
