Government further barred from house levy implementation by court


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Citizens don’t want to hear it and it seems the court doesn’t wan’t to either. The High court has extended orders barring the government from implementing the 1.5 percent housing levy until May 27.

The order was issued on Monday by Justice Maureen Onyango in Nairobi to allow for the consolidation of the various cases filed against the plan.

The Jubilee government plans to take 1.5 percent of workers’ gross salary in the formal sector to set up a housing fund.

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Various parties including the Central Organization of Trade Union (COTU), Trade Union Congress of Kenya, Consumers Federation of Kenya (COFEK) and the Federation of Kenyan Employers (FKE) have filed suits challenging the levy.

The Labour Court on April 17 issued orders temporarily stopping the government from implementing the levy to allow the consolidation of the current case by Cofek.

The government had in April issued a public notice directing employers to deduct and remit the levy by the 9th of every month.

“The Housing Fund shall be used to finance the Affordable Housing Scheme under the Big 4 Agenda,” the notice read.

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