Ruto Defends Housing Levy Contributions
Ruto Defends Housing Levy Contributions
On Sunday, President William Ruto praised his government’s housing project and emphasized how important it will be in helping Kenyans in need find employment and adequate homes.
Speaking at the Ulinzi Sports Complex in Nairobi during the Salvation Army’s 100th anniversary celebration, Ruto reaffirmed that his government is fully dedicated to putting the important development pillar into action and expressed confidence that the plan will help to improve the lives of those who are impoverished.
“Many have told me that I bother them with the Housing Fund talk, asking me who told you we need houses? We have many Kenyans living in slums and it is our responsibility, for those with a job to contribute to the Levy to provide shelter for those who don’t have,” said Ruto.
“We want to have a program that will employ young people through housing, export of labour, digital jobs and manufacturing so that our young people do not remain jobless after graduating from universities.”
Many have questioned the legality of the levy, which has been the crux of a contentious dispute between the government, the courts, and the populace.
A three-judge panel prohibited the levy’s collection in 2023, citing it as discriminatory and a clear breach of Kenya’s constitution’s Article 10.
A three-judge panel prohibited the levy’s collection in 2023, citing it as discriminatory and a clear breach of Kenya’s constitution’s Article 10.
On February 22, 2024, a measure pertaining to the collection of levies was approved by the majority of Members of Parliament (MPs). As a result, Kenyans who are employed and those who are not will be required to contribute 1.5% of their earnings to the Housing Fund.
The administration plans to commence deductions in March, thus it is now anticipated that the law will be presented to the Senate for a first reading.
The Kenya Revenue Authority (KRA) has been cautioned by Attorney General (AG) Justin Muturi not to deduct the contentious charge, citing the absence of a legal basis for such a deduction.
