The Kenya Revenue Authority (KRA) has responded to mounting pressure from Kenyans seeking refunds for Housing Levy deductions following the Court of Appeal's decision to halt the 1.5 per cent salary deductions. The government is set to challenge the ruling, while the KRA assures affected citizens that a way forward will be communicated soon.

In response to inquiries online, KRA acknowledged the concerns raised by citizens and stated that official communication on the matter would be provided in due course. Users urged the taxman to create an online refund form to streamline the process.

The Court of Appeal's directive, issued by Justices Lydia Achode, John Mativo, and Mwaniki Gachoka, has led to a suspension of the levy deductions pending the determination of consolidated cases. Some employees expressed frustration, revealing that their January deductions had already been implemented before the ruling on Friday. The levy had been in effect for nearly seven months since its inception in July of the previous year.

President William Ruto announced the government's intention to appeal the decision, emphasizing the need to create employment through housing projects. However, he did not specify the timeline for filing the appeal or whether the government would await the outcome of the ongoing case.

The Federation of Kenya Employers (FKE) has directed its members to comply with the Friday ruling, ceasing the levy deductions. The Court of Appeal noted that the levy was introduced without a legal framework, and FKE advised its members to refrain from deducting the levy unless there is a ruling to the contrary after the substantive appeal hearing or if the government challenges the decision in the Supreme Court.