‘It isn’t more about houses but jobs’ – Ruto says on Housing Levy
President William Ruto has defended the Housing Levy anchored in the Finance Act 2023, saying that its major aim is to create jobs.
Speaking on Sunday, August 13, 2023, at the Faith Evangelistic Ministries in Karen, Nairobi, Ruto said he was ready to "pay any price" to create job opportunities for the youth.
"Many people were wondering 'Why are you pushing this housing agenda? Who told you we need a house? We all have houses what is this?' It wasn't so much about the houses it was so much about the jobs for the young people of Kenya," Ruto said.
"We have never had a comprehensive programme, deliberate, intentional to create opportunities for the young people of Kenya to have income."
Currently, Kenyan employees are required to contribute 1.5 per cent of their gross monthly salary to the Housing Levy, while employees will equally contribute 1.5 per cent of the employee’s monthly gross salary to the fund.
KRA backdates Housing Levy
Early this month, the Kenya Revenue Authority (KRA) backdated the collection of the funds to July, after the High Court lifted orders suspending implementation of the Finance Act 2023.
"An employer who fails to comply with the law shall be liable to payment of a penalty equivalent to two per cent of the unpaid funds for every month if the same remains unpaid," KRA stated.
