Housing levy should be voluntary, Employers Federation says
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Employers Federation says the 3% housing levy should be voluntary to those willing and can afford to contribute
Employers Federation says the 3% housing levy should be voluntary to those willing and can afford to contribute.
The Federation of Kenya Employers (FKE) has maintained that the proposed three percent housing levy should be voluntary.
This is even as President William Ruto maintained that every worker must contribute to the housing fund.
The FKE Chief executive officer Jacqueline Mugo said that the proposal that has been touted by some quarters as a good idea should only apply to those willing to pay and can afford it.
“We need to have a dialogue on where the need is, how we identify those who really want the program because it should be made optional,” said Ms. Mugo.
She said that Kenyans were not engaged on the matter and have not been informed on how the three percent levy was arrived at, even as questions are being raised on whether the proposal was feasible.
She argued that a number of Kenyans prefer to build homes in their rural villages while others had already built permanent houses.
“Everyone wants to contribute to a fund where they are sure to get the benefit, the fund as we understand is a pool of money and there is also no certainty that everybody who contributes will own a house,” she said.
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The Federation of Kenya Employers CEO adds the housing levy should be optional.
Mugo also noted that while the idea of a housing fund is attractive, there is no guarantee that everyone who contributes will be able to purchase a home.
“Everyone wants to contribute to a fund where they are certain to receive benefits, but there is no guarantee that everyone who does so will be able to purchase a home. The fund is, in fact, a pool of money,” she said.
The housing levy has been proposed to raise funds for affordable housing projects in Kenya.
The levy would require all employers to contribute 3% of their employees’ gross salary toward the housing fund.
The funds would then be used to finance the construction of affordable housing units and to provide loans to low-income earners to enable them to purchase homes.
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