Jaramogi University to refund housing levy deductions made in January
Jaramogi Oginga
Odinga University of Science and Technology is set to refund all staff members
their housing levy deductions made in January 2024.
In an internal memo, the Deputy Vice-Chancellor stated that the deductions would be refunded by February 9.
Earlier, the Federation of Kenya Employers (FKE) asked its members to stop further housing levy deductions in light of a Court of Appeal decision.
This announcement
comes after the Court of Appeal declined to lift the High Court’s ruling that
declared the levy unconstitutional.
In a ruling on
February 26th, the Court of Appeal concluded that the Housing Levy
was introduced without a proper legal framework.
In November 2023,
the High Court ruled that the Finance Act 2023 had violated Article 10, 2(a) of
the Constitution.
"We find that
the introduction of the housing levy amendment to section 84 lacks a
comprehensive legal framework in violation of Article 10 of the constitution,
that levy against persons in formal employment without justification is
discriminatory and irrational," Judge Majanja read in his judgment.
The Housing Levy, an
integral part of the Finance Act, was deducted from employees' paychecks as of
July 2023.
Employers were to
remit 1.5 per cent contribution as employees contributed a similar amount.
The levy was to facilitate the construction of affordable homes for low-earning Kenyans.
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