The Kenya Revenue Authority (KRA) has responded to Kenyans who are pushing for Housing Levy refunds after the Court of Appeal halted the implementation of the 1.5 per cent salary deductions.
KRA while engaging with a section of Kenyans online affirmed that it would give a way forward on the matter in due course as the government was still adjusting to the ruling which halted the levy.
"It’s time for payroll, some of us have already been paid and the housing levy has already been deducted, so what do we do now? Shouldn’t we stop deducting it from January’s payslip as it has been declared unconstitutional?" X user Namraata questioned.
"Kindly await official communication on the same," KRA responded.
Others urged the taxman to create a refund form which can be filled out online.
Pressure on the government mounted hours after Court of Appeal Justices Lydia Achode, John Mativo and Mwaniki Gachoka issued the directive pending the determination of consolidated cases filed before them.
Notably, some employees lamented that they had already had their January deductions effected before the ruling was issued on Friday. So far, the levy has been in place for nearly seven months since its inception in July last year.
However, refunds for the deductions could be delayed further after President William Ruto revealed that the government would appeal the decision by the three-judge bench.
Ruto, nonetheless, did not reveal the exact day when the appeal would be filed in court. He also did not state whether he would wait for the outcome of the case which is sub-judice.
"We are going to appeal the decision. We will make the requisite law so that our agenda to create employment for jobless youths who have finished school but have nowhere to go is realised through the housing projects," the Head of State announced.
Meanwhile, the Federation of Kenya Employers (FKE) directed its members to cease making the deductions in compliance with the Friday ruling.
"In dismissing the application, the Court of Appeal noted that the levy was introduced without a legal framework. Further, the Court of Appeal indicated that its decision was based on public interest, which in the case was in favour of halting the deduction pending the hearing and determination of the Appeal.
"In light of the court order, we advise our members, not to deduct the levy unless the Court of Appeal rules otherwise after the hearing of the substantive appeal or in the alternative, should the government challenge the said ruling in the Supreme Court, the said Court reverses the ruling delivered today," read the statement in part.
