Court extends housing levy delay, again

The High Court has once again extended orders suspending implementation of the housing levy until June 10, 2019. PHOTO | FILE | NATION MEDIA GROUP

What you need to know:

  • The Employment and Labour Relations Court on Monday ordered the 11 petitions challenging the fund to be consolidated and heard together.

The Employment and Labour Relations Court has extended orders barring the government from implementing the contentious 1.5 percent housing levy.

Justice Maureen Onyango at the same time consolidated more than ten cases, mostly filed by trade unions, who are opposed to the deduction of the fund from employees.

The judge said it will save time if all the cases are heard before one court because most of the issues raised are related.

Justice Onyango, however, said the parties who have filed their cases before the High Court will decide whether to proceed or have them consolidated for expeditious hearing.

She directed the parties to serve their applications to the respondents within two days and for the respondents to file their responses within seven days. She said the case will be mentioned on June 10, for directions.

The Jubilee government plans to take 1.5 percent of workers’ gross salary in the formal sector to set up the fund.

Some of the organisations opposed to the levy are Consumers Federation of Kenya (Cofek), Trade Unions Congress (TUC), Law Society of Kenya and Kenya National Union of Nurses (KNUN).

The case was initially filed by Central Organisations of Trade Unions but Cotu had intended to withdraw the case saying its concerns had been addressed.

The move to withdraw the case was opposed by Federation of Kenya Employers (FKE) arguing that they were not involved in the negotiations.

The housing tax was to take effect in May following a public notice by the government in April ordering employers to deduct and remit the levy by the 9th of every succeeding month.