The government will collecting the contentious Housing Levy until January 10, 2024, Lands CS Alice Wahome has said.
In a statement, the CS said all employers will be required to remit the deductions until the said date.
CS Wahome explained that employers will continue remitting their 1.5 percent contribution alongside a similar rate for their employees.
This comes after a ruling by a three-judge bench on Tuesday which granted stay orders restraining the quashing of the affordable housing levy.
Justices David Majanja, Lawrence Mugambi and Christine Meoli declared the levy as unconstitutional and discriminatory as it only targeted salaried workers.
The respondents, led by lawyer George Murugara, argued that the plea for the stay orders would allow the government make the necessary adjustments.
“The reason is that, first, we have to make the necessary adjustments to the government procedure of taxation so that no party/arm of government is sued for contempt,” Murugara told the court.
Meanwhile, President William Ruto has pledged to respect the court’s decision.
On the other hand, Deputy President Rigathi Gachagua urged the Judiciary to take into account the decision’s wider social implications, claiming that the levy is allowing the government to construct homes in large numbers in an effort to address Kenya’s housing problem.
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