Due to the Cotu lawsuit, Lady Justice Hellen Wasilwa of the Employment and Labour Relations Court halted the implementation of the levies on December 19, 2018.
The first deduction was to start in January.
The judge said the stoppage would be in effect until the case is heard and determined.
Cotu secretary-general Francis Atwoli was not immediately available for a comment on the matter, same as Federation of Kenya Employers’ CEO Jacqueline Mugo.
But speaking in Nyeri on January 29, Housing Cabinet Secretary James Macharia claimed that Cotu had reached an agreement with the government on the matter.
“We had injunctions that halted the process, but the parties have agreed to withdraw them so we are ready to proceed with the project,” said Mr Macharia, adding that construction of housing units will begin in a few weeks after the start of the deductions.
“The project is now clear and will be launched in a few weeks. The first 2,000 units will be constructed in Park Road in Nairobi,” he said.
