Storm looms over controversial 1.5pc Housing tax as employers body says NO

The Federation of Kenya Employers (FKE) is up in arms over a notice from government directing employers to deduct and remit 1.5percent from salaries for the Housing tax.

In a statement to newsrooms, FKE said that the notice is against court orders that suspended the implementation of the Housing Levy up to the May 20, 2019 when the case will come up again for mention.

Also Read: Kenyans to pay more tax as Housing levy takes effect next month

“The Federation of Kenya Employers (FKE) attended Court on April 8, 2019 for the further mention of this case and obtained an extension of the Court Orders suspending the implementation of the Housing Levy up to the 20th of May 2019 when the case will come up again for mention for further directions from the Court on the Hearing and determination of this case,” the statement reads.

The notice from the Ministry of Transport, Infrastructure, Housing, Urban Development and Public Works in conjunction with Kenya Revenue Authority had been published in the local dailies on Tuesday, April 16.

Employers in the public and private sector had been ordered to remit the Housing tax by the 9th of every month starting May.

However, FKE Director/CEO Jacqueline Mugo said: “The Gazette Notice is therefore unlawful and we shall keep you posted on any further developments.”

Last year, COTU Secretary General Francis Atwoli moved to court over the Housing levy arguing that there was no public participation.

“The petitioner is opposed to the proposed amendments due to the fact that they don’t promote good governance, accountability and transparency,” he said.