PS Hinga Advocates Mandatory Housing Levy Contribution: Here’s Why
Principal Secretary for Housing and Urban Development Charles Hinga has explained why the contentious housing levy contribution in the Finance Bill of 2023 should be made mandatory.
Hinga told journalists on Wednesday at State House in Nairobi. That the tax will serve as assurance to investors that the government intends to engage in the construction of homes.
“Some of you are wondering why this cannot be voluntary. “However, when it is mandated by law, if I am to receive a billion dollars per month, it means I can call investors and assure them that as long as the law is in place, I will be collecting money after three years,” he said.
Comparing it to the fuel levy paid by Kenyans. The PS stated that the government could not have constructed roads without a reliable monthly cash flow. To present to road construction companies.
“We went to the markets and told them to give us a lot of money so that we could build roads today, and in 15 years we will be able to pay you back. They would tell us we can’t afford it if we didn’t have that,” he explained.
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“Only the highest-earning Kenyans will pay Ksh.2,500, while the majority of Kenyans will pay Ksh.1,000 or less. When we put all of this together as a nation, we will be able to tell investors that the government is providing free land for Kenyans to own homes, build them in mass, give me the keys, and let me go. If I lack the housing fund, they will refuse to construct.”
Before submitting the proposal, Kenya compared itself to Singapore, Mexico, Brazil, Nigeria, and China, according to PS Hinga.
“Sometimes to know how not to do something, they said, ‘Let’s save together’; they told their employer to save this, and I’ll save that,” the PS explained.
Some Kenyans have advocated for the housing levy to be voluntary.
The proposal requests that employees contribute three percent of their monthly salaries. To President William Ruto’s ambitious plan to provide Kenyans with affordable housing.
PS Hinga Advocates Mandatory Housing Levy Contribution: Here’s Why
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