The proposed 1.5% housing fund tax which has been the subject of debate on social media for the last few days has been suspended by the Labour Court.
The directive, issued by the Transport Ministry in conjunction with KRA, requiring mandatory contributions by employers and employees towards the Housing Fund was suspended until May 20, 2019.
Implementation of the Housing Fund Levy was pushed until a case that was filed by the Consumers Federation of Kenya (COFEK) is heard and determined.
COFEK had filed a case at the Labour Court challenging the proposed levy.
They argued that the Housing Levy was not a priority for many Kenyans because there are more pressing issues that need to be dealt with.
Some of the things cited in the suit were; drought, health challenges and unmet expectations on NHIF, the rising cost of living among others.
In the suit, COFEK argued that the introduction of the levy would result in increased unemployment since many employers would rather reduce their workforce.
They also stated that not all contributors were guaranteed houses by virtue of remitting contributions.
Netizens had also voiced their concerns about the Housing Levy, most of them feeling unhappy that it would reduce their earnings.
