HOUSING FUND

Court extends orders suspending Housing Levy until May 27

In Summary

• Maureen Onyango also ordered that three other petitions filed on the fund be consolidated.

• The fund seeks to deduct 1.5 per cent of the gross salary of employees in the formal sector.

A National Housing Corporation building in Nairobi West
A National Housing Corporation building in Nairobi West
Image: FILE

The High Court has extended orders suspending the implementation of the Housing Levy fund until next week on Monday.

Justice Maureen Onyango also ordered that three other petitions filed on the fund be consolidated.

The fund seeks to deduct 1.5 per cent of the gross salary of employees in the formal sector towards a housing levy fund.

Justice Maureen Onyango also ordered that three other petitions filed on the fund be consolidated.

 

The case will be mentioned on Monday, May 27, 2019.

In April, the Labour Court issued temporary orders suspending the fund's implementation until a case opposing it by the Consumer Federation of Kenya (Cofek) was heard and determined.

Cofek through their advocate Henry Kurauka filed an application challenging the implementation of the order which was to take effect at the end of April.

Kurauka argued that the notice offends a number of constitutional articles since there was no public participation and it doesn’t allow for cultural diversity. 

“The Ministry has been planning without informing members of the public particularly employees and those in informal settlements,” he said.

Kurauka said the Housing Fund levy is illegal, unconstitutional, discriminatory, oppressive, irrational and without basis and is not a priority to Kenyans.

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