COTU CASE

“The employer shall remit both employee and employer contributions to the National Housing Development Fund before the ninth day of the following month,” says the Act.

The government promises employees whose salaries will be deducted that their levies will put them at a position to  “finance the purchase of a home under the affordable housing scheme” as stated in the Act.

For those who will be ineligible to purchase a home, the legislation says their deductions will — after 15 years from the date of first deduction — be transferred into pension money or be transferrable to a beneficiary.

The Act says the person can also be refunded in cash.

Affordable housing is one of the items in the Jubilee administration’s Big Four agenda alongside food security, universal healthcare and manufacturing. 

The government pledged to build 500,000 new affordable homes by the end of its tenure in 2022.

Tuesday’s advertisement, which was signed by the Housing principal secretary and the KRA commissioner-general, did not make reference to a case that the Central Organisation of Trade Unions (Cotu) filed last year to challenge the levy.

Cotu had gone to court in December to question the implementation of the levy without consultations.

Through lawyer Okweh Achiando, Cotu argued that the levy was being executed without proper systems.

MACHARIA

“Regulations have not been developed to guide the implementation of the levy. It is also worth noting that there was no public participation in the amendment which was brought through the omnibus Finance Act, 2018,” the lawyer argued.

COTU CASE

“The employer shall remit both employee and employer contributions to the National Housing Development Fund before the ninth day of the following month,” says the Act.

The government promises employees whose salaries will be deducted that their levies will put them at a position to  “finance the purchase of a home under the affordable housing scheme” as stated in the Act.

For those who will be ineligible to purchase a home, the legislation says their deductions will — after 15 years from the date of first deduction — be transferred into pension money or be transferrable to a beneficiary.

The Act says the person can also be refunded in cash.

Affordable housing is one of the items in the Jubilee administration’s Big Four agenda alongside food security, universal healthcare and manufacturing. 

The government pledged to build 500,000 new affordable homes by the end of its tenure in 2022.

Tuesday’s advertisement, which was signed by the Housing principal secretary and the KRA commissioner-general, did not make reference to a case that the Central Organisation of Trade Unions (Cotu) filed last year to challenge the levy.

Cotu had gone to court in December to question the implementation of the levy without consultations.

Through lawyer Okweh Achiando, Cotu argued that the levy was being executed without proper systems.

MACHARIA

“Regulations have not been developed to guide the implementation of the levy. It is also worth noting that there was no public participation in the amendment which was brought through the omnibus Finance Act, 2018,” the lawyer argued.