ICT Cabinet Secretary Joe Mucheru, on Wednesday, defended the housing levy, terming it an investment.
Speaking at Broadcasting House in Nairobi after the presentation on KBC revamp strategy by the Management, CS Mucheru stated that the fund was geared towards improving the lives of Kenyans.
"A Housing levy of Ksh1.50 for every Ksh100 earned is an investment. Those who will not get housing will recoup their saving after 15 years," he explained.
The levy has been a subject of debate since the government issued a notice to employers to ensure that remittance to the housing levy fund was effected by May 9, 2019.
However, the notice indicated that the monthly deductions will not exceed Ksh 5,000.
"Both the employer and employee shall each contribute 1.5% of the employee's monthly basic salary, provided that the sum of the total monthly contributions shall not exceed Ksh 5000," stated an excerpt of the notice.
On Wednesday, however, the directive, issued by the Transport Ministry in conjunction with KRA, requiring mandatory contributions by employers and employees towards the Housing Fund was suspended by a High Court 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.
According to the ministry, the funds raised would be used to finance the affordable housing scheme that forms one of the pillars in the jubilee governments' Big 4 Agenda.
