KRA responds over Kenyans demanding refund for Housing Levy deductions
3 min read
Kenya Revenue Authority (KRA) give a way forward after Court of Appeal halted Housing Levy deductions
Kenya Revenue Authority (KRA) give a way forward after Court of Appeal halted Housing Levy deductions.
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.
While the government was still adjusting to the verdict that stopped the levy, KRA assured certain Kenyans that it will provide a way forward on the issue in the course of time.
“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.
Others urged the KRA to create a refund form which can be filled out online.
This comes after Court of Appeal Justices Lydia Achode, John Mativo and Mwaniki Gachoka issued the directive pending the determination of consolidated cases filed before it.
Notably, some employees lamented that they had already had their January deductions effected before the ruling was issued on Friday.
So far, the housing levy has been in place for nearly seven months since its inception in July last year.
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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.
“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 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.
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