Jaramogi Oginga Odinga University to Refund Staff Housing Levy Deductions Following Court Ruling
Jaramogi Oginga Odinga University of Science and Technology has announced plans to reimburse all housing levy deductions made from staff members’ salaries in January 2024.
This decision follows an internal memo issued by the Deputy Vice-Chancellor, indicating that the refunds will be processed by February 9.
The University informed its staff of the Court of Appeal’s dismissal of a stay application filed by the Government on January 26, 2024.
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The ruling effectively suspended the housing levy deduction for January 2024. This development occurred after the University had already carried out the deductions as part of its payroll processing.
Previously, the Federation of Kenya Employers (FKE) had advised its members to cease further housing levy deductions in response to a Court of Appeal decision.
This recent announcement comes in the wake of the Court of Appeal’s refusal to overturn the High Court’s verdict declaring the levy unconstitutional. The Court of Appeal, in its ruling on February 26th, determined that the Housing Levy was implemented without a proper legal framework.
In November 2023, the High Court had declared the Finance Act 2023 in violation of Article 10, 2(a) of the Constitution.
Judge Majanja, reading the judgment, stated that the introduction of the housing levy amendment lacked a comprehensive legal framework, leading to discrimination and irrationality against persons in formal employment.
The Housing Levy, an essential component of the Finance Act, began to be deducted from employees’ salaries starting July 2023.
Employers were required to contribute 1.5 per cent, with employees matching the amount. The purpose of the levy was to support the construction of affordable housing for low-income earners in Kenya.
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Jaramogi Oginga Odinga University to Refund Staff Housing Levy Deductions Following Court Ruling
