A court has suspended the implementation of 1.5 percent housing levy pending the hearing of a case filed by the Consumers Federation of Kenya (COFEK).
COFEK filed the suit challenging the government’s decision to implement the new levy, arguing that not only is it illegal but will also lead to over-taxation.
“The Housing Fund Levy will compel employees in private and public sector to invest in housing which may not be a priority to their individual needs thus infringing their constitutional right of utilizing their earning according to their earning according to their wishes,” court papers read.
COFEK also argued that the levy is not a priority as the country has more pressing matters including drought, rising cost of living and health challenges to deal with.
“The Housing Fund Levy is irrational because it does not factor the fact that some employees in private and public sector enjoy reasonable housing allowances and are members of home ownership schemes as part of their employment,’’ the statement by COFEK read.
Kenyans reject new levies
This comes as Kenyans put up a united front resisting the new taxes across social media. Through #ResistHousingFundLevy, Kenyans expressed their frustrations with the government.