On Tuesday, President William Ruto called leaders of the Kenya Kwanza Alliance to State House in Nairobi and pleaded with them to support the housing fee that is being opposed in the Finance Bill, 2023.
The President oversaw the group being taken through the Housing Fund’s policy so they can comprehend it before talking about it to the public or the media, the president also read the riot act to some leaders, according to sources.
Ruto reportedly revealed to the leaders how he called on Mathira MP Eric Wa Mumbi after he made a pledge to oppose the Bill in the media.
“Hatuwezi finyilia mwananchi mwenye amefinyika (we can’t overburden the ordinary Kenyan). As a responsible Member of Parliament, I will stand with the people”, said Wa Mumbi.
Charles Hinga, the State Department of Housing and Urban Development’s Principal Secretary, explained to the MPs the concept behind the Housing Fund and why the three percent housing levy had been set at Sh2,500.
According to Murang’a Senator Joe Nyutu, the Housing Fund was more of a savings scheme where one will be allowed to access his savings after seven years.
“The PS informed us that a board of trustees akin to that of the National Social Security Fund (NSSF) will be formed to manage the savings of Kenyans where the government can borrow from it in the form of Treasury Bills and bonds,” Nyutu said.
Mukurweini MP John Kaguchia said they were also taken through the government’s plan to amend the debt anchor in the Public Finance Management Act to revert to basing debts on 55% of Gross Domestic Product (GDP) rather than on absolute figures of Sh10 trillion.
The President promised to speak to the teachers’ unions in a bid to persuade them to drop their hard-line position and support the Bill, which he said was a blessing in disguise since it was clearing way for salary increase.
“The money that will be deducted by the employer will go into the basket of the employees and this serves as a salary increment,” the Head of State told the leaders.
The President downplayed the prospect of employer layoffs due to the housing levy by claiming that those affected will be employed in the construction industry.
The government’s initiative to “demystify” the Finance Bill, 2023 comes as the opposition, lobbying organizations, and the church have criticized the government for adding extra taxes to Kenyans’ already heavy burden.
“With the high rise in unemployment and poverty levels, Kenyans are struggling to make ends meet, businesses are struggling, families are breaking down and economic hardships contributing to high cases of mental illnesses, depression and even loss of lives,” the bishops said in a statement that was read by ACK Archbishop Jackson ole Sapit.
President William Ruto promised to summon the leaders again in two weeks to discuss his ambitious National Health Insurance Fund agenda.