FKE directs employers to suspend housing levy deductions

By Peter Ochieng

The Federation of Kenya Employers (FKE) has directed employers to stop, with immediate effect housing levy deductions.

Formal employers are deducted 1.5 of their monthly salaries to contribute to the housing fund kitty, boosted by an additional 1.5 contribution from employers.

However, Court of Appeal judges on Friday slammed brakes on the levy after they declined to suspend a High Court ruling, which termed the levy unconstitutional.

As such, in a notice, FKF said the order will remain in force until an appeal is filed, heard and determined by the Court of Appeal. “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,” the notice signed by Executive Director and CEO Jacqueline Mugo reads in part.

“Our commitment is to keep you informed promptly of any changes or updates. We encourage you to stay informed on this issue and advise your employees accordingly,” she added.

Meanwhile, President William Ruto has declared that his Kenya Kwanza administration will be challenging the appellate court's decision, barring the state from deducting housing levy from Kenyans.

"We are going to appeal the decision. We will make the requisite law so that our agenda to create employment for jobless youths who have finished school but have nowhere to go is realized through the housing projects," he said, speaking in Meru County.

"It is the first time in the Republic of Kenya that we have an administration that has a clear and demonstrable plan to create jobs for millions of young Kenyans."

Elsewhere, the government has vowed to appeal the High Court’s verdict that declared the planned deployment of Kenyan police officers to Haiti as illegal. Government spokesman Isaac Mwaura said they had taken note of the court’s ruling regarding the deployment of officers, in the Multi-national Security Support (MSS) Mission for the restoration of law and order in the Caribbean country.

“While the government respects the rule of law, we have however decided to challenge the High Court’s verdict forthwith,” Mwaura said.

“The government reiterates its commitment to honouring its international obligations as a member of the community and comity of nations.”

Kenya had pledged to deploy 1,000 security personnel for the mission seeking to combat gang violence characterized by widespread murders, kidnappings and extortion in Haiti.

In October 2023, the United Nations Security Council gave the go-ahead for the deployment of a multi-national security support mission, led by Kenya.