Housing Principal Secretary Charles Hinga. He says the money one will get back from the housing fund if they don’t want a house, will earn interest and will not be taxed by KRA.
Housing Permanent Secretary Charles Hinga has urged workers to support the government’s compulsory housing levy, saying “we are helping you rob your employer’s bank”.
He complained that the scheme was suffering from too much propaganda and lies, “especially from those who want the government to fail in the run-up to the 2027 elections”.
Speaking live on Inooro TV last night, Mr Hinga put the blame of the country’s housing crisis on colonialists, the International Monetary Fund and reckless borrowing by the Jubilee administration, prompting the government to introduce a compulsory levy on workers.
He further hinted that the plan will be amended to address serious concerns raised. This is in contrast to President William Ruto’s public statements that the plan will be approved as is.
Mr Hinga said if an employee is not interested in buying the houses to be built under the plan, “then after seven years we will refund you the money we have collected from you, together with the amount your employer has contributed”.
He said: “This is like forcing your employer to give you a salary increase for your future benefit and if you get a house, the plan becomes one of forcing your employer to help you own a house.”
The PS said the money one will get back will earn interest and will not be taxed by the Kenya Revenue Authority.
“We are now engaging the employers on the grievances they have raised. That is why we are now in the public participation phase. By the second reading of the Bill, you will like us … we are listening. The issues raised are real. Employers are complaining of increased burden because of the many increases in statutory obligations that the government has brought forward,” he said.
Mr Hinga said the questions being raised about the plan are salient and are informing what the final Bill will look like.
The government is proposing a mandatory deduction of a maximum of Sh2,500 from both the employee and the employer in a plan aimed at pooling together Sh9 billion a month.
The money will be used to build affordable homes across the country, which will be sold to workers and others in need.
