Net salary of employees in the public & private sector is expected to dip 1.5 percent in May as the Government directive to deduct housing levy takes effect.
A notice in the local dailies indicates that employers are to deduct and remit the levy by the 9th of every succeeding month.
“The Housing Fund shall be used to finance the Affordable Housing Scheme under the Big 4 Agenda,” the notice reads.
President Uhuru Kenyatta unveiled the Big 4 Agenda two years ago saying his government would put up half a million low-cost houses.
With the grand plan, the tax load became heavier as Treasury introduced a new fuel levy and proposed the Housing Fund levy.
COTU Secretary General Francis Atwoli moved to court arguing that there was no public participation in the plan.
“The petitioner is opposed to the proposed amendments due to the fact that they don’t promote good governance, accountability and transparency, “ he argued.
On March 18, 2019, the Employment and Labour Relations court extended orders suspending the government plan to impose the 1.5 percent Housing levy. The suspension was later lifted.