KISUMU, Kenya, Apr 3 – The Federation of Kenya Employers (FKE) is in talks with the Treasury to explore capping the duration of the housing levy, citing concerns over its financial burden on workers.

FKE Chief Executive Officer Jacqueline Mugo said many employees believe the levy should be optional rather than a mandatory tax.

“These are some of the concerns we had raised with the government before the levy was implemented,” she said.

Mugo noted that FKE is still engaging the Treasury to address the issue in the interest of Kenyan workers. However, she urged employers to continue remitting the levy, acknowledging that significant funds have already been collected for affordable housing projects.

“I know it is difficult for employers since there is no guarantee of getting a house, but we will continue engaging the government to push for a review,” she said.

Speaking in Kisumu on Thursday during the 44th Annual General Meeting of FKE’s Western Kenya region, Mugo said they have formally written to Treasury Cabinet Secretary Njuguna Ndung’u, requesting a review of the capping period for contributions.

“We are engaging the government to assess whether the level of contributions can be reviewed and if a cap can be placed on the payment period,” she said.

Mugo also raised concerns over the high cost of doing business, citing excessive taxation and frequent policy changes as major challenges for employers in the region.

She noted some improvements in the sugar sector but stressed the need for further reforms to boost its contribution to the economy.

“We want the sugar industry to thrive and support the growth of businesses in this economy,” she said.