1.5 percent housing levy pay cut for workers to start March
Formally employed workers could start paying a 1.5 percent salary deduction beginning March 1 to finance construction of cheap houses by the State. Transport, Housing and Infrastructure Cabinet Secretary James Macharia Tuesday said the government has reached an agreement with the workers’ union, which will pave the way for an end to court injunctions that had stopped the deduction. “We had injunctions that halted the process, but the parties have agreed to withdraw them so we are ready to proceed with the project,” said Mr Macharia in Nyeri during an inspection of ongoing public projects in the county. Employment and Labour Relations Court Judge Hellen Wasilwa had granted the order to halt the deductions following an urgent application by the workers’ umbrella body, the Central Organisation of Trade Unions (Cotu) in December. Cotu secretary-general Francis Atwoli had faulted the tax, saying there was no public consultation before its implementation. The levy is to be deducted from each employee’s basic salary and remitted to the National Housing Development Fund (NHDF). Violating orders Cotu has, however, not made public its position on the matter. An application filed by the Ministry of Housing asking the court to lift the injunction against the deduction…





