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Government Urged to Suspend Housing Levy

Pressure is mounting on the government to abide by a court order suspending housing levy on all salaried Kenyans.

A section of legislators argue that the tax is insensitive as it comes at a time the country is experiencing harsh economic times.

The move by the state to introduce housing levy in a bid to build 500,000 houses to address housing shortage has dived into strong headwinds.

The High Court has suspended its implementation citing lack of public participation.

Some lawmakers led by Kisii Senator Okong’o Omogeni are urging the government to abide by this directive.

In their opinion, the deductions should be suspended given that Kenyans are undergoing tough economic times.

Besides this, Omogeni holds the view that the housing function should be left under the armpits of county governments to guarantee a seamless roll out.

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The Gusii legislators have in the meantime urged Kenyans to turn out and enlist in the ongoing mass digital listing.

In a notification published last week Tuesday in Kenya’s local dailies, the government indicated that it would start deducting the mandatory 1.5 per cent housing levy from all employees’ monthly basic salary effective this month.

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The government instructed employers to remit the levy with other statutory levies by 9th of every succeeding month.

The first contribution was expected to be made by 9th May 2019.  The housing fund shall be used to finance the affordable housing scheme under the government’s big four agenda.

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