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LSK To Sue KRA For Collecting Housing Levy

The Law Society of Kenya (LSK) has said it will sue the commissioner general Kenya Revenue of Authority over contempt of court for alleged illegal deduction of housing levy.

Addressing the press Monday, LSK president-elect Faith Odhiambo said there was no legal basis for the taxman to deduct the funds from employees.

The society has also called on Kenyans who may have fallen victims to volunteer the information to the LSK.

“We call upon all employees who have suffered this illegal deduction to get in touch with the LSK through the email address lsk@lsk.or.ke and share their payslips,” said Odhiambo.

She pointed out that the move is to facilitate the filing of the applications seeking a refund of the illegally deducted dues.

“The payslips will be redacted to conceal identity details that can be used to identify and possibly punish any employees that share the details with us,” she added.

Outgoing LSK president Eric Theuri said the statement by the society comes in the wake of an advisory by Attorney General Justin Muturi asking KRA to stop collecting housing levy from salaried Kenyans saying it lacks legal basis.

AG Muturi, in a letter to KRA Commissioner General Humphrey Wattanga, said the Court of Appeal’s January 26 decision declining to stay High Court orders that declared the levy unconstitutional still stands.

“The upshot of this is that there is no legal basis on which the Housing Levy as provided in section 84 of the Finance Act, can be implemented,” Muturi said.

Muturi was responding to a letter from Wattanga dated February 12, seeking guidance on the government’s position on the matter.


By Matildah Obaigwa


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