Cotu and the Federation of Kenya Employers (FKE) on Wednesday maintained their opposition to the monthly deduction of 1.5 per cent of workers’ pay to finance a new low-cost housing fund in a cut that will chop salaries by up to Sh5,000.
President Uhuru Kenyatta reinstated the levy at a higher rate than the Treasury’s suggestion of 0.5 per cent of the gross pay per month matched by employers, which was rejected by MPs last month.
Central Organisation of Trade Unions (Cotu) Secretary-General Francis Atwoli termed it unconstitutional, arguing that workers and employers were not consulted.
“We have 2.5 million workers in formal employment who are set to contribute to the fund and the government’s target is to build one million houses within the next four years. How long will it take to cater for all workers and what will be the criteria to allocate one a house?” posed Mr Atwoli.