NAIROBI, Kenya, Apr 17 – Amani National Congress leader Musalia Mudavadi now wants the government to use proceeds recovered from corruption in providing houses for the poor, instead of straining the already burdened taxpayer.
Through his Twitter handle on Wednesday, Mudavadi said with the high cost of basic commodities and at a time when some Kenyans are grappling with drought and hunger, it’s unfair to load the employee and employer with additional taxation.
“This is an ill-conceived approach to a noble cause at this point in time. The government should dedicate recovered proceeds from corruption in providing houses for the poor,” he tweeted.
This is the same feeling by citizens who have taken to social media platforms with the hashtag #ResistHousingFundLevy which is now trending on Twitter.
The discussion seems to have sparked anger to most of Kenyans who think they have been taxed enough.
Here are some of the tweets.
Suppose the government makes the economy conducive for every KENYAN to build a house? Even house rents in Nairobi are over the roof. Create wealth and let everyone have money in their pockets. Empower KENYANS. We have no food. We are dying of hunger#ResistHousingFundLevy
— Lord Abraham Mutai (@ItsMutai) April 17, 2019
Who told this useless Jubilee government, the low income Kenyans priority is housing, they have more pressing issues like better jobs, health, education, infrastructure, markets, electricity, industrialization, corruption #housinglevy #ResistHousingFundLevy
— @Rainmaker (@abuamaramin) April 16, 2019
I say NO to the Housing Levy Fund it needs to be amended. The poor will not benefit. Details in the prints #ResistHousingFundLevy
— Obuki Bwo'Obiero (@ronaldobuki) April 17, 2019
#ResistHousingFundLevy. GoK had the clients, the money, the need, the technology and the companies to deliver 10,000 police housing units. How many units were delivered in 5 years before the President threw in the towel with his usual "jameni sasa mnataka nifanye nini"?
— Prof. Alfred Omenya (@aomenya) April 17, 2019
111 years required for the lowest contributor of Housing Fund Levy to eventually own a house. The President should just accept the project is a mirage. #ResistHousingFundLevy
— Ngugi Waithaka (@NgugiWaithaka) April 16, 2019
The taxation which is set to take effect starting May is seeking to have 1.5 per cent of employees’ salaries and 1.5 per cent employers’ contribution be submitted to the National Housing Development Fund every month.
Failure to remit the contributions on time attracts a penalty of 5 per cent of the contributions payable by the employer for each month or part thereof that the amounts remain unpaid.
The Housing Fund Levy is designed to finance the affordable housing scheme which is under President Kenyatta’s ambitious Big Four Agenda, which promises to deliver 500,000 houses in five years among other promises.
Currently, Kenya requires more than 250,000 housing units every year to meet demand.
This is against the annual average of 50,000 units delivered by the government and private developers per year.