The Lower Eastern Times Opening The Third Eye
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Following a court ruling declaring the housing levy deductions as unconstitutional, the Federation of Kenya Employers (FKE) has instructed its members to immediately stop deducting the housing levy from their employees’ salaries.
The Court of Appeal judges, Lydia Achode, John Mativo, and Paul Gachoka, emphasized the public interest aspect of the matter, citing the High Court’s ruling that the housing levy lacked a legal framework.
In a subsequent statement, FKE Executive Director Jacqueline Mugo directed employers to refrain from collecting the levy until another ruling is issued after the court hears and decides on the government’s appeal.
Ms. Mugo stated, “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.”
She further advised, “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, and the said Court reverses the ruling delivered today.”
The Court of Appeal judges highlighted, “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. 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.”
