Sharp Daily
No Result
View All Result
Wednesday, February 25, 2026
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home News

Employers urge companies to stop housing levy deductions after court ruling

Brian Murimi by Brian Murimi
January 26, 2024
in News
Reading Time: 2 mins read

Following the court of appeal’s declaration that the housing levy is unconstitutional, the Federation of Kenya Employers issued advice on Friday, urging companies to suspend deductions for the government’s affordable housing program.

This comes after an appeals court rejected a request to continue collecting funds while it reviews a case challenging the legality of the levy.

The prominent business group told its members in a statement that the Court of Appeal ruled earlier in the day that the 1.5% levy on salaries should stop immediately because it was introduced without a proper legal framework. The court rejected the government’s plea to keep collecting the money pending its appeal.

“In light of the court order, we advise our members not to deduct the levy unless the Court of Appeal rules otherwise after the hearing of the substantive appeal,” the statement said.

RELATEDPOSTS

House prices surge to a decade high as buyers favour standalone homes

January 28, 2026

Tackling Kenya’s housing crisis with affordable solutions

May 8, 2025

The employers’ group has maintained that forcing members to remit the levy before its legality is fully determined violates their rights. The group’s CEO, Jacqueline Mugo, welcomed Friday’s ruling as a win for public interest.

“Our commitment is to keep you informed promptly of any changes or updates,” Mugo said in the statement to members. “We encourage you to stay informed on this issue and advise your employees accordingly.”

In a unanimous ruling by Justices Achode, Mativo and Gachoka, the appellate court declined to suspend last November’s High Court judgement which had declared sections 76, 77, 78, 84, 87, 88 and 89 of the Finance Act 2023 as unconstitutional. The sections were the legal basis for the housing levy which was meant to fund the government’s ambitious affordable housing programme.

“Cognizant of the fact that an applicant needs only to demonstrate one arguable ground and not a multiplicity of them, we have no hesitation in finding that all the applicants have satisfied us that they have an arguable appeal,” the judges ruled regarding the government’s application for stay orders pending appeal.

However, on whether the appeal would be rendered nugatory, the court found that the government failed to demonstrate irreversible harm. “The applicants left it to the court to fill the gaps. We cannot do so without appearing to descend into the arena of the dispute. We decline the invitation to do so,” the ruling stated.

The ruling means that the legal basis for the 1.5% housing levy on salaries now stands invalidated. The government plans to table a standalone Affordable Housing Bill to revive the levy, but its future remains uncertain.

Previous Post

Unraveling the true cause of housing prices in Africa

Next Post

CAF and beIN hit with USD 300,000 fines for anti-competitive practices

Brian Murimi

Brian Murimi

Brian Murimi is a communications and advocacy professional with a focus on innovation, policy and continental development in Africa. A former journalist, he now works at the intersection of knowledge, strategy, and pan-African institution building.

Related Posts

Investments

Kenya’s Eurobond refinancing carries Sh7.3 billion cost for taxpayers

February 24, 2026
Investments

Uganda secures board representation in Kenya Pipeline deal as IPO nears critical threshold

February 23, 2026
World Bank says Kenya Is shielding state firms from market realities
News

World Bank warns aid cuts to refugees could deepen crisis in Kenya

February 23, 2026
News

Kenya Raises USD 2.3 Bn Eurobond to Extend Debt Maturity and Ease Refinancing Pressure

February 20, 2026
News

Scent of distinction: Inside Kenya’s exploding perfume obsession

February 20, 2026
News

Unclaimed assets in Kenya surpass sh100 billion as recovery efforts lag

February 20, 2026

LATEST STORIES

How Kenyans could access part of their pension savings before retirement

February 25, 2026

Kenya’s Eurobond refinancing carries Sh7.3 billion cost for taxpayers

February 24, 2026

Gold overtakes the US Dollar as the world’s top reserve asset

February 24, 2026

Uganda secures board representation in Kenya Pipeline deal as IPO nears critical threshold

February 23, 2026
World Bank says Kenya Is shielding state firms from market realities

World Bank warns aid cuts to refugees could deepen crisis in Kenya

February 23, 2026

Kenya Raises USD 2.3 Bn Eurobond to Extend Debt Maturity and Ease Refinancing Pressure

February 20, 2026

Ways regulators could promote fair competition in the age of Artificial Intelligence

February 20, 2026

Scent of distinction: Inside Kenya’s exploding perfume obsession

February 20, 2026
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024