In a statement sent to newsrooms, The government has directed employers to start deducting 1.5 per cent housing levy from all employees in the public and private sector beginning next month.
Housing and Urban Development Principal Secretary Charles Hinga Mwaura and the Kenya Revenue Authority Commissioner-General John Njiraini in a joint statement said employers are required to deduct and remit the levy by the 9th of each succeeding month effective May 9.
Both the employer and the employee shall each contribute 1.5 per cent of the employee’s monthly basic salary, provided that the sum of the total monthly contributions shall not exceed Sh5,000.
However, the Federation of Kenya Employers has termed the order to deduct the levies “unlawful.” sighting that the court injunction still on. The Netizens have reacted;
Kenyans we are in for rude, agry messy hard time ahead. On top of NHIF, NSSF, PAYE, HeLB, LOANs, BILLS, among others, now HOUSE LEVY from 9th May 2019. Msipo hama hii kenya, mtahamishwa. #HatukoPamojaTena #Kumirakumira pic.twitter.com/2lkc3Ghw51
— Eliud.M.Marangu (@OleMarangu) April 16, 2019
This housing levy is a scam.
– So the govt wants me to pay for a house I don't know where it is.
– After deduction, where does these monies go?
– was it too hard to source for funding, build, allocate the house then charge?
– is it a new way of stealing from my emaciated payslip?
— Tomno (@JTomno) April 16, 2019
The Housing Fund Levy annoys me because most of the money will be used on administration and not actually building affordable houses. This whole thing is a gimmick to create more dubious positions for politically connected people.
— Lynnet Achieng' (@atoti_) April 16, 2019
It will be remembered FKE and the Central Organisation of Trade Unions had filed a case in a bid to stop the levy.