Kenyans Pressure Ruto to Refund Housing Levy Deductions
Kenyans Pressure Ruto to Refund Housing Levy Deductions
Kenyans who are demanding refunds for the Housing Levy have received a response from the Kenya Revenue Authority (KRA) following the Court of Appeal’s decision to cease the 1.5% wage deductions.While the government was still getting used to the verdict that stopped the levy, KRA assured certain Kenyans on the internet that it will provide a path forward on the topic in due time.
It’s payroll time; some of us have already received our paychecks and the housing levy has already been subtracted. What should we do now? Given that it has been ruled unconstitutional, shouldn’t we cease deducting it from January’s payslip?” Namraata, an X user, inquired.”Please wait for official word on this,” KRA said.
Some others asked the tax collector to develop an online refund form. Hours after Court of Appeal Justices Lydia Achode, John Mativo, and Mwaniki Gachoka issued the directive until the resolution of consolidated cases filed before it, pressure on the government increased.
Notably, a few workers bemoaned the fact that their January deductions had already been taken out before Friday’s decision. Since the levy’s establishment in July of last year, it has been in effect for approximately seven months. Refunds for the deductions, however, might not happen anytime soon as President William Ruto declared that the administration would challenge the three-judge panel’s ruling.However, Ruto did not specify the day the appeal will be submitted to the court. Additionally, he did not say if he would wait to learn the outcome of the subjudice case.
“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 realised through the housing projects,” the Head of State announced.
In the meantime, in accordance with the Friday order, the Federation of Kenya Employers (FKE) instructed its members to stop making the deductions.”The Court of Appeal pointed out that the levy was imposed without a legal foundation when it denied the claim. In addition, the Court of Appeal stated that it made its decision based on the public interest, which in this instance supported stopping the deduction while the Appeal heard the issue and rendered a ruling.
“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,” the statement begins.
