Housing levy deduction order extended to June 10

The High Court has extended for the second time the order barring the government from implementing the 1.5 per cent housing levy until June 10.

The extension which comes after another similar order has is to allow the consolidation of 11 cases challenging the plan by the government to deduct a 1.5 per cent levy from employees’ salaries to create a housing kitty.

While giving the extension order on Monday, Justice Maureen Onyango directed that the cases be heard together on June 10.

Parties such as Federation of Kenyan Employers (FKE), Central Organisation of Trade Union (Cotu), Trade Union Congress of Kenya and Consumers Federation of Kenya (COFEK) 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 issued a public notice in April directing employers to deduct and remit the levy by the 9th of every month.

The Jubilee administration is keen on the project as housing is one of the four pillars of the Big Four Agenda.