MPs Propose 6 Changes to Housing Fund, Limiting Ruto’s Influence
Caleb Mule, a representative from Machakos Town, proposed additional amendments to the Finance Bill 2023 on Tuesday, June 20, aimed at restricting the government’s use of funds collected from Kenyans for the Housing Fund.
While submitting his proposal, Mule urged his colleagues to use the collected funds exclusively for housing-related construction projects.
His proposal intended to establish guidelines for President William Ruto’s use of the funds, specifically directing that they be allocated for housing initiatives.
“The Affordable Housing Levy shall not be used for any purpose other than the development of affordable housing and associated social and physical infrastructure, as well as the provision of affordable home financing to Kenyans,” proposed the lawmaker.
In contrast, Kabuchai MP Majimbo Kalasinga proposed that the contributions be made voluntarily, a move that will result in the Head of State collecting less than his Ksh83 billion goal.
In addition, the lawmaker proposed that deductions be set at 1.5% of the basic salary rather than the gross salary as specified in the bill.
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Kalasinga advocated for a Ksh3,000 cap on employer and employee contributions made together.
“An employee may choose to increase his or her contribution to the fund by writing to the employer and the cabinet secretary responsible for housing matters and specifying the higher monthly percentage above the rate specified in subsection.
“Where an employee chooses to make a higher contribution under a subsection, the employer shall not be required to make a corresponding contribution,” reads a portion of the amendments.
In addition, the lawmaker proposed allowing Kenyans to claim their contributions with interest seven years after making them.
“Contributors shall receive their contributions in cash at the prevailing interest rate; provided, however, that contributions paid out in cash shall be included in the contributor’s taxable income for the year and taxed at the prevailing rates,” he added.
Didmus Barasa, a representative for Kimilili, also proposed that Kenyans who have contributed to the fund have the option to enter into a joint purchase agreement.
This proposed amendment would permit couples to enter into joint housing ventures.
“Provided that an employee who has accumulated contributions may enter into a joint house purchase agreement with another contributor to the Fund to finance the purchase of a home under the affordable housing scheme,” proposed Barasa.
MPs Propose 6 Changes to Housing Fund, Limiting Ruto’s Influence
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