Starting this coming month, the government is set to begin deducting 1.5 percent housing levy from all employees.
In a briefing made on Tuesday, the ministry of Housing and Urban Development said that the first contribution will be due by the 9th of May, 2019.
The ministry further instructed employers to remit the housing levy fund by the same date.
“provided that the sum of the total monthly contributions shall not exceed Sh5,000. Voluntary contributions may also be made to the scheme at a minimum of Sh2,000 per month,” read the statement in part.
Employers are expected to deduct and remit the levy together with other statutory levies from both the employer and the employee by the 9th of each succeeding month.
They also noted that this should be done together with other payroll statutory deductions.
Self-employed persons are allowed to join the fund as voluntary contributors by paying Sh200 a month; Sh100 for administration and Sh100 as a benefit.
After contributing without fail to the proposed National Housing Development Fund for that period, employees will qualify to get funds for a mortgage at 7 per cent annual interest rate, according to draft regulations.
This comes just months after the court temporarily suspended the implementation of the deduction of 1.5 per cent Housing Development Levy on workers’ salaries pending the hearing and determination of a case filed by COTU where Justice Hellen Wasilwa issued the interim orders suspending Section 31A of the Employment Act as amended by Section 86 of the Finance Act 2018.
COTU had contested the implementation of the levy saying it’s unconstitutional and amounts to double taxation.
Here are some reactions to this story.
Someone enlighten me…
Aren't we supposed to have public participation before such things are made compulsory?
We're heavily taxed and I am pretty sure this money in a few years will be a corruption headline pic.twitter.com/LFbQH0lGz0
— Diana (@Dee_kui) April 16, 2019
Of what benefit shall this be to an employee outside Nairobi? Uhunye amebaki na miaka tatu ya kutunyanyasa tu. These houses shall be purchased 80% by politicians who will rent them to the common man at 4 or five times its value. https://t.co/yBS7cBDceQ
— Napoleon GonnaParty (@TheNelate) April 16, 2019
Just so they can steal it.
— Artsenal FC (@Xomifred) April 16, 2019
For houses which no architectural plans have been drawn, no foundation.. nothing.
— Dexter254 EPL Champions (@_Dp254) April 16, 2019
The grim reaper has come for kenyans😱😱😱😱
— Naftali Shangala🇰🇪🇰🇪🇰🇪 (@Easynaf2022) April 16, 2019
These fellas aren't serious
— Maina (@Minches01) April 16, 2019
Haki…I hate this government.
— Patrick (@pkamaukinyenje) April 16, 2019
Very soon we'll be paying dowry to this tumbilee govt…
— Beyond The Blues® (@Xiphos_1) April 16, 2019
Kenyatta empire + huduma namba =
— julishwa (@julishwa) April 16, 2019
Sad state of affairs.
— MASISAH VINCENT 🇰🇪🇰🇪 (@ItsMasisah) April 16, 2019
Jesso!!! Wakenya tulikosea wapi? magi walo
— MarikoJabodiSemeKolunje. (@Jabodiseme) April 16, 2019
This is quite annoying. 😫 We’ve been taxed enough already now they want the same people to pay for houses which they won’t qualify for? 🤦🏾♀️
— 🇰🇪Turquoise 🐳 (@ssbo) April 16, 2019
Tell us what you think in the comments section.
Would you like to get published on this Popular Blog? You can now email Cyprian Nyakundi any breaking news, Exposes, story ideas, human interest articles or interesting videos on: [email protected] Videos and pictures can be sent to +254 710 280 973 on WhatsApp, Signal and Telegram.