Workers’ Unions Demand Housing Levy Be Refunded With Interest After Court Verdict
Workers’ unions countrywide now want the government to refund the monies deducted from the controversial housing levy together with interests after the Court of Appeal on Friday declared it unconstitutional.
The unions, in a joint statement to the press, faulted the government for what they termed as an illegal push to deduct the 3 percent levy from salaried workers to fund affordable housing projects despite public uproar.
“Workers stand in solidarity against illogical, illegal, and unconstitutional government policies that are unbalanced to meet the needs of Kenyans. We demand all housing levy deductions be refunded with interest immediately. We demand the courts to be respected by the employers just like the employees do,” read the statement.
“Any employer/person/entities who deduct this illegal tax from the worker’s salary will bear individual responsibility and the unions shall also use the only weapon that employers understand best; withdrawal of labor to seek retribution.”
Despite noting that the housing projects are critical to Kenyans, the unions reiterated adherence to the rule of law saying that any deduction that is not governed within the stipulations of the Constitution poses a risk of extorting the public through corruption.
“The Court of Appeal has given a resounding ruling against implementing the illegitimate housing levy. This ruling brings relief to workers who are already burdened by hardship, addressing the injustice inflicted upon Kenyans by an uncaring government,” noted the unions.
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“The need for housing in Kenya is undeniable but the current approach serves as an extortion theme to siphon hard-earned earnings from workers. Unclear deductions, unclear house applications, and unclear house allocations serve as a recipe for a major housing scandal and grand corruption like what happened in Malaysia in the IMDB scam.”
Led by the Kenya Medical Practitioners, Pharmacists, and Dentists Union (KMPDU), Union of Kenya Civil Servants (UKCS), Kenya Union of Clinical Officers (KUCO), Universities Academic Staff Union (UASU) and the Trade Union Congress (TUC), the organizations also want the government to stop the proposed Social Health Insurance Fund (SHIF) in its tracks.
They termed SHIF deductions as unfair to employed workers, threatening that if their demands are not met then they will lead their members in downing their tools to compel the government to follow the law.
“In the same vein, we are in opposition to the proposed SHIF 2.75% deductions on gross salaries. 20% of the workforce who form part of the 55 million Kenyans cannot pay for healthcare for another 80% of Kenyans,” the statement added.
“The burden of healthcare should not fall solely on labor taxes; instead, general taxes should be utilized for this purpose. Employers, too, must contribute their fair share for the benefits derived from labor services.”
On Friday, Appellate Court judges Lydia Achode, John Mativo, and Paul Gachoka cited public interest in the matter, underscoring the High Court ruling that the housing levy was introduced without a legal framework.
Workers’ Unions Demand Housing Levy Be Refunded With Interest After Court Verdict
