The High court in Nairobi has temporarily stopped the implementation of the Housing Development levy.
This is after Central Organization of Trade Unions, COTU(K) moved to the court seeking orders to stop the fund that was to be financed by public servants through a 1.5 percent levy on their salaries beginning January 2019.
COTU argues that the levy was unconstitutional and amounts to double taxation.
COTU Secretary General Francis Atwoli through his lawyer Okweh Achiando noted that the levy to be taxed on the basic salary of employees would infringe on the right to fair remuneration.
COTU also argued that there was no public participation in the Amendment of the Employment Act that was signed by the president Uhuru Kenyatta and which is to come into effect on January 1, 2019.
The government intends to raise 57 billion shillings annually through the levy for the construction of affordable housing project.
Elsewhere, two people suspected to have broken in to a vehicle parked at Thika Road Mall (TRM) and stole 300,000 have been arraigned in a Kiambu Court.
Rosalid Wangari Mwihaki and Josphat Macharia Wanjiru were arraigned before Senior Resident Magistrate Brian Khaemba but they did not take plea as prosecution presented a miscellaneous criminal application and they sought for five more days in order to complete investigations.