Housing levy row: Kuppet demands refund of tax deducted from January pay

 Akelo Misori

The Kenya Union of Post Primary Education Teachers (Kuppet) Secretary-General Akelo Misori.

Photo credit: File | Nation Media Group

What you need to know:

  • In November, the High Court said the government’s decision to deduct 1.5 per cent monthly from salaried workers was discriminative.
  • The Court of Appeal on Friday last week declined to extend the order allowing the government to continue collecting the levy. 

Teachers have protested Housing Levy Fund deductions in their January salary terming them illegal and in contravention of a Court of Appeal order that suspended the tax.

Yesterday the Kenya Union of Post Primary Education Teachers (Kuppet) demanded a refund of the deducted amount and threatened to sue Teachers Service Commission CEO Nancy Macharia and other officials in their personal capacities for contempt of court.

At over 360,000, teachers make the single largest group of workers in the country who contribute to the contentious levy.

Their union membership is shared between Kuppet, the Kenya National Union of Teachers and the Kenya Union of Special Education Teachers.

In November, the High Court said the government’s decision to deduct 1.5 per cent monthly from salaried workers was discriminative, but temporarily allowed the government to continue collecting the levy.

The Court of Appeal on Friday last week declined to extend the order allowing the government to continue collecting the levy. 

In a statement, Kuppet said that the commission received the court orders in good time for it not to charge teachers.

“Kuppet is horrified by the Teachers Service Commission’s flagrant violation of court orders over the Housing Levy. Such action fits in a disturbing pattern where public authorities obey court orders at their own convenience. Kuppet demands the immediate release of the illegally deducted taxes to teachers,” the union secretary-general Akello Misori said.

“Kuppet will take all measures to protect members’ hard-earned salaries and benefits. Our options include instituting contempt proceedings against TSC officials in their personal capacities,” he added.

Kuppet joins the National Trade Union Congress, Kenya Medical Practitioners Pharmacists and Dentist Union, University Academic Staff Union and Union of Civil Servants that last week demanded the government refunds the Housing Levy to its members.

Meanwhile, the Kenya County Government Workers Union (KCGWU) national secretary-general Roba Duba has called on President William Ruto to prioritise reviewing the salaries of county workers before deducting the affordable housing levy from them. He said county workers’ salaries have never been reviewed since devolution began in 2013. 

Speaking to journalists on Tuesday, Mr Duba said the union was concerned about the new taxes the Kenya Kwanza administration has introduced since it came to power.

“We are talking about workers whose salaries have not been revised since 2012. They are already overburdened, then 2023/2024 you’re introducing new taxation on the same people, without due regard to the constitution that says that every two to three years, salaries must be reviewed,” Mr Duba said.

He said a wage increase would protect the workers from the effects of inflation, which has been pushing up the cost of living.

Kuppet joins the National Trade Union Congress, the Kenya Medical Practitioners Pharmacists and Dentist Union, University Academic Staff Union and Union of Civil Servants that last week demanded the government refunds the Housing Levy to its members. 

And yesterday, Mbeere North MP Geoffrey Ruku sent a warning shot to contractors who have abandoned sites of the affordable housing projects following the court’s decision, threatening that their contracts would be terminated. 

“It is also important for all contractors to know that in case you send away the artisans or fundis working on your housing project sites, it will be deemed that you are working with Azimio. We will engage the highest office in the land to terminate your contract so we can have other contractors who will keep the work ongoing,” he said.

The MP, speaking at Parliament buildings, further urged National Assembly Speaker Moses Wetang’ula to recall the House from recess to pass the Affordable Housing Bill.

Additional reporting by David Mwere