Government to wait long before implementing housing levy

The government will have to wait for a while before implementing the housing levy that was supposed to have effected in May.

This is after the Employment and Labour relations court sort to extend an order suspending the implementation of the housing fund to June 10.

Justice Maureen Onyango on Monday ordered the 11 petitions challenging the fund be consolidated and heard together, a move she had earlier resorted to.

Levy plan

The government plans to take 1.5 percent of workers’ gross salary in the formal sector to set up affordable houses for its citizens.

It had ordered employers to remit the deduction by 9th of every month starting May, but various parties— including the Central Organization of Trade Union, Trade Union Congress of Kenya, Consumers Federation of Kenya (Cofek), the Law Society of Kenya and the Federation of Kenyan Employers — moved to court challenging the move.

However, Cotu struck a deal with the government and was ready to withdraw the case.

Workers, on the other hand, expected a pay rise order from the president but their expectations were dashed after Cotu resort to strike a deal with the government on May 1 (Labour day).

The battle is now fresh in court, as the government looks forward to implement it.