FKE asks employees to stop collecting housing Levy Immediately.
The Federation of Kenya Employers (FKE) has issued an advisory to all employers in Kenya to stop deducting the Housing Levy with immediate effect.
In a statement issued by Jacqueline Mugo, the CEO of FKE cited Court Ruling which dismissed a stay application on housing Levy.
“Dear Esteemed Member. 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.” A statement from FKE read in part.
In dismissing the application, the Court of Appeal noted that the levy was introduced without a legal framework
Further, the Court of Appeal indicated that its decision was based on public interest, which in the case was in favour of halting the deduction pending the hearing and determination of the Appeal.
In light of the court order, the FKE advised employers 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 Federation detailed that it shall continue to monitor any developments in this matter.
“Our commitment is to keep you informed promptly of any changes or updates.” She said.
Adding: “We encourage you to stay informed on this issue and advise your employees;accordingly.
“If you have any questions or concerns regarding the implementation of this advisory, please do not hesitate to contact us.”
