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Housing Fund Levy suspended after consumer lobby moves to court

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The Employment and Labor relations court suspended the Housing Fund Levy after the Consumer protection agency, Cofek, moved to court to stop the law. On 16th April, a public notice requiring employers to deduct 1.5 per cent from each employee’s basic salary was published on the papers. The notification was given by the Ministry of Transport, Infrastructure, Housing, Urban Development, and Public Works alongside Kenya Revenue Authority.

Cofek filed a petition at the Employment and Labor relations
court through its lawyer Henry Kurauka terming the housing levy as illegal. In
the petition, the consumer protection body sued the Ministry in charge of Housing
and the Attorney General for enforcing the monthly deductions on employers and
employees.

Cofek’s lawyer argued that the levy is unreasonable and oppressive. According to the federation, “The Housing Fund Levy is irrational because it does not factor that some employees in private and public sector enjoy reasonable housing allowances and are members of home ownership schemes.” Labour Court judge Justice Maureen Onyango ruled that the Housing Levy will remain suspended until the matter between Kenyan Employers and the government is resolved in court on 20th May 2019.



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