The government will start deducting 1.5 per cent housing levy from all employees effective this month.
The first contribution will be due by May 9, 2019.
Never understood what this housing levy is for.
You want to build me a house that i may not even like the the shape and force me with it. May not even get a house at the end of it.
— Kinyua Abala. (@AbalaKinyua) April 16, 2019
Housing and Urban Development ministry in a statement on Tuesday instructed employers to remit housing levy fund by May 9.
â€śâ€¦provided that the sum of the total monthly contributions shall not exceed Sh5,000. Voluntary contributions may also be made to the scheme at a minimum of Sh2,000 per month,â€ť the ministry said.
The employers are required to deduct and remit the levy together with other statutory levies from both the employer and the employee by 9th of each succeeding month.
This should be done together with other payroll statutory deductions, they noted. https://twitter.com/uwanja/status/1118033373811941378
The housing fund shall be used to finance the affordable housing scheme under the big four agenda.
This comes months after the court temporarily suspended the implementation of the deduction of 1.5 per cent Housing Development Levy on workersâ€™ salaries pending the hearing and determination of a case filed by Cotu.
Justice Hellen WasilwaÂ issued the interim orders suspending Section 31A of the Employment Act as amended by Section 86 of the Finance Act 2018.
Cotu contested the implementation of the levy saying itâ€™s unconstitutional and amounts to double taxation.
Tulikosea wapi jameni? NHIF, NSSF, PAYE, HELB, BILLS, KRA, LOANS now HOUSE LEVY, and as if this is not enough â€“ Billions lost every now and then!. Revolution is coming! Sudan was triggered by raise of bread prices, kenyans are being milked to the last drop in their vains. pic.twitter.com/RfAZWRTjz8
— Eliud.M.Marangu (@Mwendaeliud) April 16, 2019