The Federation of Kenya Employers (FKE) has asked employers to stop deducting housing tax from the salaries of employees.
The directive by the FKE came after the Court of Appeal in a ruling on January 26th, 2024, dismissed a Stay Application where the Government sought to continue collecting the housing tax until the appeal it filed is heard and determined by the Court of Appeal.
“The Court of Appeal noted that the levy was introduced without a legal framework. Further, the Court of Appeal indicated that its decision was based on public interest, which in the case was in favour of halting the deduction pending the hearing and determination of the Appeal,” said FKE executive director and chief executive officer Jacqueline Mugo.
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“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.”
