NAIROBI, Kenya, Feb 24 — Teachers Service Commission (TSC) has defended the move to deduct the housing levy tax from the January pay slips despite a court ruling halting the deductions.
TSC CEO Nancy Macharia explained that the Court of Appeal ruling halting the deductions was made on January 25, days after the deductions were made and salaries disbursed.
“We ran our payroll on the 20th. We had already run the payroll,” said Macharia.
Macharia however remained non-committal on whether TSC will refund the deductions irregularly deducted from the teachers’ pay slips.
Kenya Union of Post Primary Education Teachers (KUPPET) demanded the immediate release of the illegally deducted monies to teachers.
KUPPET Secretary General Okello Misori sought assurance from the TSC that moving forward they will obey court orders specifically the orders on the housing tax.
Reimbursement
“KUPPET demands immediate release of the illegally deducted taxes to teachers. We have also sought an assurance from the Commission that it will obey court orders going forward, including specifically the orders on the housing tax,” Misori said.
The teachers’ union had threatened to move to court should TSC ignore their demands saying the move will only demonstrate its willingness to disobey the law.
“KUPPET will take all measures to protect members’ hard-earned salaries and benefits. Our options include instituting contempt proceedings against TSC officials in their personal capacities,” Akelo said.
President William Ruto’s affordable housing plan suffered a major blow after the Court of Appeal declined to extend an order allowing the government to continue collecting the housing levy.
Three judges of the High Court ruled that the introduction of the Housing Levy through amendment of the Employment Act by Section 84 of the Finance Act, 2023 lacks a comprehensive legal framework.
Justices David Majanja, Christine Meoli, and Lawrence Mugambi further stated that the imposition of the housing levy against persons in formal employment to the exclusion of other non-formal income earners is unfair, discriminatory, and irrational.