President Uhuru Kenyatta has directed that the 1.5% housing levy deduction from an employee’s salary be made voluntary.
The president made this announcement during the 56th Jamhuri day celebrations at the Nyayo stadium in Nairobi.
Uhuru said that the government has already commissioned the first phase of affordable housing project which will contain 100,000 units in the country.
He said the project aims at building 500,000 units by 2022 to address housing and social amenity challenge in the country.
He further directed that the Treasury and the housing and urban development together with parliament to make the housing levy fee voluntary.
Earlier this year the Principal Secretary housing and Urban Development Charles Hinga announced that every employer will be required to deduct 1.5% of an employees salary towards the housing fund.
This move received resistance from Kenyans with organizations such as the Central Organization of Trade Union(COTU), Trade Union Congress of Kenya, Consumers Federation of Kenya(Cofek) and the Federation of Kenyan Employers(FKE) filing suits in court to challenge the levy.
