Proposed 3% Housing Fund levy must be shelved – Raila

Friday, May 26th, 2023 17:25 | By
Proposed 3% Housing Fund levy must be shelved - Raila
Azimio leader Raila Odinga addresses the press at the Jaramogi Oginga Odinga Foundation in Nairobi in the past. PD/Kenna Claude

Azimio la Umoja - One Kenya coalition leader Raila says the proposed 3 per cent housing levy is unsustainable and should be shelved.

Speaking during a prayer meeting at Wiper party leader Kalonzo Musyoka's farm in Yatta on Friday, May 26, the opposition chief accused President William Ruto's Kenya Kwanza administration of overburdening the taxpayer.

Raila noted that the government was wrong to introduce the levy when the country is struggling economically.

He said the government should have consulted him for lessons before coming up with the proposal.

"I have knowledge of Housing Levy, they should have come to me for lessons. I would have taught them because they do not know," Raila said.

"You cannot introduce an additional tax when the economy is in depression, you can't do it. Where did you get the three per cent from? If you are saying it is an investment, how about the employer? What is the employer investing in?"

The former prime minister, who was accompanied by Narc Kenya leader Martha Karua and several other high-ranking opposition leaders, insisted that the government should drop the proposal.

"The levy is competently unsustainable. We say this thing should be shelved and must be shelved," Raila added.

The levy is part of the proposed Finance Bill 2023 which is currently in the public participation stage.

The Bill has elicited mixed reactions from members of the public with a majority expressing their disapproval, citing the struggling economy that has seen prices of basic commodities hit the roof.

If passed into law, an employee and their employer will be required to contribute 3 per cent of their income towards the national housing scheme.

President Ruto insists that the contributions would help Kenyans access affordable housing.

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