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Statement: Federation Of Kenya Employers Says Affordable Housing Deduction Unlawful


On Tuesday morning, the government of Kenya (GoK) carried a newspaper advert stating that the housing levy fund which requires employers to deduct 5 percent from salaries is now in force.

This is contrary to what the court said.

Now, the Kenya Federation of Employers (FKE) has condemed the move terming it unlawful, citing a court order it obtained that suspended the process until May 20th.

READ: Reactions: Government set to begin mandatory salary deductions in order to fund housing project

Below is their full statement in text.


Dear Member,

Our attention has been drawn to the Public Notice published in today’s Daily Nation Newspaper under the headline Housing Fund Levy.

The notice by the Ministry of Transport, Infrastructure, Housing, Urban Development and Public Works in conjunction with Kenya Revenue Authority has issued a go-head on the implementation of the Housing Fund Levy with effect from 9th May 2019.

This is contrary to the Court Orders which are still in force.

The Federation of Kenya Employers (FKE) attended Court on the 8th of April 2019 for the further mention of this case and obtained an extension of the Court Orders suspending the implementation of the Housing Levy upto the 20th of May 2019 when the case will come up again for mention for further directions from the Court on the Hearing and determination of this case.

The Gazette Notice is therefore unlawful and we shall keep you posted on any further developments.

Yours sincerely,

JACQUELINE MUGO (EBS) Executive Director/CEO

Below is the advertisement by the GoK today.

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