Federation of Kenya Employers advises members to halt housing levy deductions
Jacqueline Mugo, the Executive Director of the Federation of Kenya Employers (FKE), advised employers not to deduct housing levy.
Judges Lydia Achode, John Mativo, and Paul Gachoka of the Court of Appeal emphasized the public interest in the matter of affordable housing, reiterating the High Court's decision that the housing levy was introduced without a legal framework.
Jacqueline Mugo, the Executive Director of the Federation of Kenya Employers (FKE), advised employers in a subsequent statement not to deduct housing levy.
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"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," said Ms. Mugo.
"In light of the court order, we advise our members 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 Court of Appeal judges, in their ruling, stated, "The trial court held that the housing levy was introduced without a legal framework. It also held that the levy was targeting a section of Kenyans. In our view, public interest lies in awaiting the determination of the appeal.
This is because if the stay sought is granted at this stage, should the appellate Court affirm the impugned decision, then some far-reaching decisions that will have been undertaken pursuant to the impugned laws may not be reversible.
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