Raila Odinga Urges Employers To Defy Housing Levy Order

In a defiant stance against the government’s insistence on enforcing the Housing Levy, Azimio la Umoja – One Kenya Coalition party leader Raila Odinga has called upon employers to disregard threats from government officials and cease remitting the 1.5% deduction from employee salaries.

Odinga’s remarks came during a media engagement on Wednesday, November 29, 2023, in response to a query regarding the government’s postura following a court ruling declaring the levy unconstitutional.

“I would urge all the employers to immediately stop paying because you will be acting unconstitutionally,” Odinga asserted, emphasizing the court’s decision as final and binding.

He further criticized the government’s attempt to circumvent the court’s ruling, stating, “That is not unlike Kenya Kwanza to try to ignore the rule of law.”

Odinga’s call to employers directly contradicts the directive issued by Lands, Public Works, Housing, and Urban Development Cabinet Secretary (CS) Alice Wahome, who reiterated that employers must continue deducting the Housing Levy and remitting it to the Kenya Revenue Authority (KRA).

Wahome warned of penalties for non-compliance, citing the Income Tax Act, which subjects employers to a 2% penalty for each unpaid month.

Odinga’s stance aligns with the broader position of the Azimio coalition, which has challenged the Housing Levy’s legality since its inception. The coalition argues that the levy places an undue burden on both employees and employers, hindering economic growth.

The ongoing debate surrounding the Housing Levy highlights the complexities of balancing government revenue needs with the rights of individuals and businesses. Odinga’s call to employers adds another layer to the discussion, as it remains to be seen whether employers will heed the opposition’s advice or adhere to the government’s directive.