Do you remember the much hyped President Uhuru Kenyatta’s affordable Housing Project? Well, the head of state needs to leave a legacy at the end of his term in 2022, and he is doing everything possible to have the big four agenda work.
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.
Housing and Urban Development ministry in a statement on Tuesday instructed employers to remit housing levy fund by May 9.
“…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,” 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.
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 workers’ salaries pending the hearing and determination of a case filed by Cotu.
Justice Hellen Wasilwa 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 it’s unconstitutional and amounts to double taxation.