The Lower Eastern Times Opening The Third Eye
Related Articles
Jaramogi Oginga Odinga University of Science and Technology has announced its intention to reimburse all housing levy deductions taken from staff members’ salaries in January 2024. As per an internal memo, the Deputy Vice-Chancellor assured that the refunds would be processed by February 9.
The decision to refund the deductions stems from a Court of Appeal ruling on January 26, 2024, which denied the government’s stay application, effectively suspending the collection of the Housing Levy until the appeal is determined. The university clarified that the ruling came after the payroll had already been processed, and deductions were implemented.
Earlier, the Federation of Kenya Employers (FKE) had advised its members to halt additional housing levy deductions following the Court of Appeal’s decision. This development follows the Court of Appeal’s refusal to overturn the High Court’s declaration that the levy was unconstitutional.
In a verdict on February 26, the Court of Appeal determined that the Housing Levy lacked a proper legal framework upon its introduction. The High Court had previously ruled in November 2023 that the Finance Act 2023, which included the Housing Levy, violated Article 10, 2(a) of the Constitution.
Judge Majanja, in delivering the judgment, stated, “We find that the introduction of the housing levy amendment to section 84 lacks a comprehensive legal framework in violation of Article 10 of the constitution, that levy against persons in formal employment without justification is discriminatory and irrational.”
The Housing Levy, a component of the Finance Act, had been deducted from employees’ salaries since July 2023, with employers contributing 1.5 percent and employees contributing an equivalent amount. The purpose of the levy was to fund the construction of affordable homes for low-income earners in Kenya.
