Order Halting Implementation of 1.5% Housing Levy Extended

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The High court has extended orders suspending the government plan to impose a 1.5% housing levy on salaries of all employees as a contribution to the National Housing and Development Fund.

The court on Monday extended the order to May 27, 2019.

The order was issued on March 18 following a petition filed by the Central Organisation of Trade Unions (COTU).

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According to the Ministry of Transport, Infrastructure, Housing, Urban Development and Public Works in Kenya employers need to deduct 1.5% of their staff salaries as housing levy and submit the deductions to the National Housing Development Fund (NHDF).

Further, the employer is required to send the deduction together with other payroll statutory deductions to the Kenya Revenue Authority (KRA) by the 9th of every month.