LSK Vows to Sue KRA for Contempt Over Housing Levy

04, Mar 2024 / 1 min read/ By Livenow Africa

The Law Society of Kenya (LSK) has announced its intention to pursue contempt of court proceedings against the Kenya Revenue Authority (KRA) Commissioner General for allegedly disregarding court orders regarding the housing levy.

LSK president-elect Faith Odhiambo asserted during a press conference on Monday that there was no legal basis for KRA and other state agencies to deduct housing levy funds from employees' salaries.

Odhiambo urged affected individuals to come forward and provide their payslips to LSK for potential refund claims, assuring confidentiality in handling their information.

Outgoing LSK president Eric Theuri emphasized the relevance of this stance in light of Attorney General Justin Muturi's advisory instructing KRA to halt housing levy collections due to lack of legal basis. Muturi referenced the Court of Appeal's decision on January 26, which upheld High Court orders declaring the levy unconstitutional.

The High Court's initial ruling on November 28, 2023, deemed the housing levy illegal, citing discrimination against workers in the informal sector. Despite this, the government sought conservatory orders to continue collecting the levy, which the Appellate Court rejected on January 26, 2024.

Theuri criticized KRA's decision to seek guidance on the matter, considering it unnecessary and deceptive. The AG's advisory underscores the legal void regarding housing levy collection and administration as of January 26, 2024.

LSK's commitment to pursuing legal action against KRA highlights its dedication to upholding the rule of law and protecting the rights of Kenyan employees against unlawful deductions.

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