The Law Society of Kenya (LSK) will sue the Kenya Revenue Authority (KRA) for illegally deducting the housing levy.

Speaking during a press confrence LSK president Faith Odhiambo faulted KRA over what she termed the seclusion of informal sector workers.

“There is no legal basis to deduct the Housing Levy and this action amounts to contempt of court and arbitrary imposition of tax. The Law Society of Kenya shall immediately commence contempt of court proceedings against the Commissioner General of the Kenya Revenue Authority as well as against all accounting officers and employers who have unlawfully deducted the Housing Levy.

LSK has threatened to go after KRA Commissioner General Humphrey Wattanga and all the KRA accounting officers for disregarding court orders calling for a halt in housing levy deductions.

On his part, outgoing LSK president Eric Theuri called on all employees whose salaries have been deducted to share their pay slips to facilitate the application seeking a refund of the deductions.

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This comes a week after a letter by Attorney General Justin Muturi warning KRA against deducting the controversial Housing Levy.

Muturi in a letter to KRA Commissioner General, cited lack of a legal framework to support the deduction from salaried employees.

“The upshot of this is that there is no legal basis on which the housing levy as provided in section 84 of the Finance Act can be implemented. Therefore, our considered opinion is that as of January 26 2024 there is no legal provision that enables the collection and administration of the housing levy,” the AG stated.