Ruto bows to pressure on 3% Housing Fund levy
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Relief to civil servants as Ruto adminstation hints at making amendments on Housing Fund deduction
Relief to civil servants as Ruto adminstation hints at making amendments on Housing Fund deduction.
Housing principal secretary, (PS) Charles Hinga declared on Tuesday, June 6, that the Housing Fund would be changed to take into account the differing opinions of many stakeholders.
While appearing before the National Assembly’s Finance Committee, the PS emphasized that modifications to the fund, which consists of a 3% monthly deduction, would be made to benefit Kenyans .
Given the controversy surrounding the fund, Hinga was challenged to explain how it would increase home ownership.
According to reports, Kenyans had doubts about the project from the beginning, and the government’s public awareness campaigns had not been successful in raising awareness.
“We may disagree on the approach and there are contentious issues in the Bill that need to be cured and I hope this Committee will do so,” Hinga stated.
“We can correct it, but let’s not lose focus of why we are advocating for it. We are doing this because we have reached a reckoning point,” he added.
He urged the committee to defend the fund contained in the Finance Bill and amend it before the Second Reading, without shutting down the levy.
According to the PS, if a contributor is fired, he or she would access the funds after retirement. He thus emphasised that it was not a tax but a levy championed by President William Ruto.
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Hinga explained that one of the changes he was pushing for was including all Kenyans eligible for contribution and receiving houses. He clarified claims that the fund would only be contributed to by employed Kenyans.
“If you are a parent but you already have a home, you may want to contribute for the sake of your child,” he urged.
President Ruto defended the deduction on May 11, arguing that he was keen on fulfilling his campaign promises to Kenyans.
Ruto further criticised leaders opposing the fund despite using it to consolidate votes during the campaign period.
“We went everywhere during campaigns and told Kenyans that there was a housing plan that would give people opportunities for employment and allow them to own homes,” the President stated on Sunday, June 4, at a Thanksgiving service in Narok.
He thus dared MPs to oppose the project, threatening to track them down. His remarks, however, did not augur well with the opposition, which threatened to recall mass protests if the housing fund and the controversial Finance Bill 2023 pass.
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