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Why your April salary will be less

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By ELVIS ONDIEKI
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Your April salary is likely to be lower by some thousands of shillings after the government ordered employers to start making deductions aimed at funding the Jubilee administration’s housing project.

In a newspaper advertisement on Tuesday, the Housing ministry and the Kenya Revenue Authority announced that the housing fund levy “has come into effect”, meaning every employed Kenyan must remit 1.5 per cent of their basic salary for April to the National Housing Development Fund.

Employers are also required to send a figure matching the employees’ deductions to the Housing fund.

“The employers are required to deduct and remit the levy together with other statutory levies from both the employer and the employee by the 9th of each succeeding month together with other payroll statutory deductions. The first contribution shall be due by May 9, 2019,” the advertisement stated.

That means that if a person’s basic salary is Sh50,000, some Sh750 of that will be retained by their employer to be remitted to the Housing fund.

The employer will also pay Sh750, meaning the company will send Sh1,500 to the National Housing Development Fund.

However, if the total exceeds Sh5,000, the government says it will not take a coin more.

That means that a person whose basic pay is, say, Sh200,000 and whose deduction will be Sh3,000 plus the employer’s Sh3,000, will not see Sh6,000 remitted to the Housing fund.

Just Sh5,000 will suffice.

The deduction became law by the enactment of the Finance Act 2018 that followed the budget statement presented to Parliament by Treasury Cabinet Secretary Henry Rotich.

“The employer shall remit both employee and employer contributions to the National Housing Development Fund before the ninth day of the following month,” says the Act.

The government promises employees whose salaries will be deducted that their levies will put them at a position to  “finance the purchase of a home under the affordable housing scheme” as stated in the Act.

For those who will be ineligible to purchase a home, the legislation says their deductions will — after 15 years from the date of first deduction — be transferred into pension money or be transferrable to a beneficiary.

The Act says the person can also be refunded in cash.

Affordable housing is one of the items in the Jubilee administration’s Big Four agenda alongside food security, universal healthcare and manufacturing. 

The government pledged to build 500,000 new affordable homes by the end of its tenure in 2022.

Tuesday’s advertisement, which was signed by the Housing principal secretary and the KRA commissioner-general, did not make reference to a case that the Central Organisation of Trade Unions (Cotu) filed last year to challenge the levy.

Cotu had gone to court in December to question the implementation of the levy without consultations.

Through lawyer Okweh Achiando, Cotu argued that the levy was being executed without proper systems.

“Regulations have not been developed to guide the implementation of the levy. It is also worth noting that there was no public participation in the amendment which was brought through the omnibus Finance Act, 2018,” the lawyer argued.

Due to the Cotu lawsuit, Lady Justice Hellen Wasilwa of the Employment and Labour Relations Court halted the implementation of the levies on December 19, 2018.

The first deduction was to start in January.

The judge said the stoppage would be in effect until the case is heard and determined.

Cotu secretary-general Francis Atwoli was not immediately available for a comment on the matter, same as Federation of Kenya Employers’ CEO Jacqueline Mugo.

But speaking in Nyeri on January 29, Housing Cabinet Secretary James Macharia claimed that Cotu had reached an agreement with the government on the matter.

“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, adding that construction of housing units will begin in a few weeks after the start of the deductions.

“The project is now clear and will be launched in a few weeks. The first 2,000 units will be constructed in Park Road in Nairobi,” he said.



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Police officer kills self, lover and barmaid in Likoni : The Standard

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A senior police officer in Likoni, Mombasa County killed himself after shooting dead his lover and a bar attendant following a disagreement.

Likoni Deputy Officer Commanding Station Joab Omondi is reported to have gunned down the two at a local bar in Mtongwe after a heated argument involving his girlfriend and the attendant on Thursday night.
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For the latest news in entertainment check out Sde.co.ke and Pulser.co.ke , for everything sports visit Gameyetu.co.ke and ladies we have you covered on Evewoman

LikoniPolice Officer





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Police rescue 74 minors from filthy children’s home – Nairobi News

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Detectives from the Directorate of Criminal Investigations (DCI) have rescued 74 children and arrested a director of a children’s home that has been operating under pathetic conditions.

Ms Pauline Wambui, the director of Young Dream children’s home, has since been charged. DCI is now investigating whether the home had been registered.

The DCI said that they received the complaints from children officers in Juja and acted.

“Upon receiving complaint letters from children’s officers in #Juja on the pathetic env’t of children at the #YoungDream Children’s home,@DCI_Kenya Detectives acted swiftly &rescued 74children.The director of the home-Pauline Wambui-arrested & charged. Children well &in safe hands,” the DCI said.

Investigators said that they were also investigating to find out how the children left their original abode and joined the home.



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Kenya: More Trouble for Kenyans Who Fail to Get ‘Huduma Namba’

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The government will block SIM cards of people without Huduma Namba after the registration drive, Communications Authority of Kenya Director-General Francis Wangusi said Thursday.

The mass registration for the National Integrated Identity Management System (Niims), dubbed Huduma Namba, is expected to end on May 18th.

“We will ask service providers to shut down SIM cards of those who will not have acquired Huduma Namba,” Mr Wangusi said.

He added: “Those without SIM cards will not be able to purchase new ones without Huduma Namba.”

The digital listing programme was launched earlier this month by President Uhuru Kenyatta but the government was barred by the High Court from forcing Kenyans to register.

The High Court also barred the government from using the data to withhold any services or bar anyone from accessing public facilities.

In addition, the government cannot also share the collected information with international bodies.



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