Kenya Union of Post Primary Teachers (Kuppet) National Governing Council will move to court next week to challenge the government’s decision to implement housing levy on grounds that it will lead to over taxation of Kenyans.
The union, through its Secretary General Akello Misori said it has enough reasons to file a new suit just a day after Central Organisation of Trade Unions (Cotu) applied to be allowed to withdraw from the case.
“During the mention of the case yesterday, Employment and Labour Relations Court gave the green- light to all parties who have concerns about the Housing Levy Fund to file new suits,” said Misori.
Further, the union said the new suit would not interfere with the order issued by the court last week where it temporarily suspended deduction of 1.5 per cent from employees.
On Friday, the High Court declined to lift orders barring government from deducting 1.5 per cent from salaries until the dispute is fully solved.
The Consumers Federation of Kenya (COFEK) had filed a suit challenging the government’s decision to implement the Housing Fund levy saying it is illegal and will lead to unjustified over-taxation.
COFEK, through its officials, argue that the introduction of the Housing Levy is not a priority in Kenya because there are more pressing issues such as drought, health challenges and unmet expectations on NHIF, rising cost of living among other issues.
They argue that implementing the said levy will increase unemployment as many employers will resort to cut down their workforce to detriment of the economy.
Further, it is COFEK’s position that the housing levy does not guarantee that all contributors under the scheme would get houses after investing their money.
“The Housing Fund Levy will compel employees in private and public sector to invest in housing which may not be a priority to their individual needs thus infringing their constitutional right of utilizing their earning according to their earning according to their wishes,’’ reads court papers.
They argue that it is unreasonable to compel a citizen who will not secure a house to contribute towards house ownership of another person without corresponding benefit.
“The Housing Fund Levy is irrational because it does not factor the fact that some employees in private and public sector enjoy reasonable housing allowances and are members of home ownership schemes as part of their employment,’’ says COFEK.