Federation of Kenya Employers (FKE) rejects Housing Fund Levy deduction to begin in May

The Federation of Kenya Employers (FKE) on Tuesday issued a notice following a government announcement on the Housing Fund Levy set to take force in May.

The employers rejected the government directive to remit the 1.5% deduction arguing that there are court orders that are in force barring the action.

"Our attention has been drawn to the Public Notice published in today’s Daily Nation Newspaper under the headline Housing Fund Levy.

"The notice by the Ministry of Transport, Infrastructure, Housing, Urban Development and Public Works in conjunction with Kenya Revenue Authority has issued a go-head on the implementation of the Housing Fund Levy with effect from 9th May 2019.

FKE CEO Jacqueline Mugo (C) during a past event Pulse Live Kenya

"This is contrary to the Court Orders which are still in force," the statement read in part.

According to the statement, FKE had the court orders extended to apply until May 20, 2019.

Unlawful Gazette Notice

The statement further outlined that the orders will only be evacuated when the court hears and determines the case on the same date.

"The Gazette Notice is therefore unlawful and we shall keep you posted on any further developments," the statement by FKE CEO Jacqueline Mugo concluded.

FKE CEO Jacqueline Mugo during a past event (Twitter) Pulse Live Kenya

In the statement issued on Tuesday, the Ministry had stated: "The employers are required to deduct and remit the levy together with other statutory levies from both the employer and employee by the 9th of each succeeding month."