The national umbrella body for employers in Kenya, Federation of Kenyan Employers (FKE), has directed all its members to stop deducting the Housing Levy from their staff with immediate effect.
The directive follows a Friday Court of Appeal ruling that declared the scheme illegal thereby ordering a stop to funding the housing kitty with immediate effect. The court argued that the levy was introduced without a legal framework.
“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,” reads part of FKE’s statement signed by its CEO Jacqueline Mugo, received by BRK.
Responding to the ruling, President Ruto has vowed to not only proceed with the housing scheme, but also challenge the verdict at the Supreme Court.
Related: Court declares Housing Levy illegal, orders collections to be stopped.
