Jaramogi Oginga Odinga University of Science and Technology (JOOUST) is set to refund its employees January’s deductions of the housing levy.
The Bondo-based varsity noted that the decision was based on the appellate court halting the deductions from payslips of employees.
The University noted it had already prepared payrolls for its employees for the month of January and had already made the affordable housing deductions.
“This action in effect halted the Housing Levy deduction from the month of January 2024. The ruling came at a time when the University had already processed the payroll and effected the deductions,” stated the University.
“This is, therefore, to inform you that the University will refund the Housing Levy deducted for the month of January 2024 to all members of staff by 9th February 2024,” it added.
This comes weeks after the Federation of Kenya Employers (FKE) issued an advisory to its members to stop deducting housing levy from the pay slips of salaried workers following the move by the appellate court to halt the deductions.
“In light of the court order, we advise our members, not to deduct the levy unless the Court of Appeal rules otherwise after the hearing of the substantive appeal or in the alternative, should the government challenge the said ruling in the Supreme
Court, the said Court reverses the ruling delivered today,” stated FKE Executive Director and Chief Executive Officer (CEO) Jacqueline Mugo.
“The Federation shall continue to monitor any developments in this matter. Our commitment is to keep you informed promptly of any changes or updates,” she added.
In dismissing the stay application, the Appellate Court noted that the levy was introduced without a legal framework.
Appellate Court judges Lydia Achode, John Mativo and Paul Gachoka cited public interest in the matter, underscoring the High Court ruling that the Housing Levy was introduced without a legal framework.
“The trial Court held that the Housing Levy was introduced without a legal framework. It also held that the levy was targeting a section of Kenyans. In our view, public interest lies in awaiting the determination of the appeal,” reads the court ruling in part.