From Grilling to Support: Hussein Mohamed’s Timeless Interview with Uhuru on the Housing Levy
On December 28, 2018, former President Uhuru Kenyatta was required to explain his plan to deduct 1.5% of employee salaries to support his National Housing Fund.
During the State of the Nation address held at Mombasa State House. Hussein Mohamed, a Citizen TV employee at the time, questioned Uhuru about the controversial deduction, which elicited mixed reactions from Kenyans.
Hussein exerted pressure on Uhuru to explain why workers were required to forfeit 1.5% of their pay to support his agenda.
“Why would someone be forced to pay the tax if they don’t necessarily support the plan?” Hussein asked the then-head of state, prompting Uhuru to vehemently refute claims that the deduction was a tax.
“You see, this is where you are erroneous because you are misleading people by claiming it is a tax. It is not a tax, but an investment and contribution towards home ownership. It is a contribution, not a tax,” Uhuru insisted in response.
During the interview, Uhuru also explained that all Kenyans who contributed to the fund would receive their contributions if they did not wish to occupy the newly built homes.
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Consequently, he defended the mandatory deduction by stating that the nation’s mortgage program was exorbitant. Moreover, he argued that the majority of Kenyans could not afford to pay the mortgage rates.
“Gentlemen, let us not go so far. We reside in a country with fewer than 500,000 mortgage-holding households. Some borrowers receive a five-year loan. How will you pay for it over five years?
Uhuru added, “If the government and Kenyans do not participate in this process, we will continue with this exorbitant system, which is why there are no affordable homes in the country.”
The court halted the government’s plan to deduct 1.5% from employee salaries, even though the government had provided a rationale for the deduction.
In an April 2019 ruling, Lady Justice Maureen Onyango characterized the deduction as a burden for Kenyans.
“Since there have been prior orders halting the implementation of the housing fund levy, I am convinced that Cofek’s request is of the utmost urgency and will grant an order halting the deduction of employee salaries until May 20, when the dispute will be heard,” Onyango stated.
Later, the court invalidated the plan, compelling Uhuru to adopt a different strategy to implement his Affordable Housing agenda.
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Hussein Supporting Now
The current spokesperson for the White House, Hussein Mohamed, is among the supporters of the proposal.
The administration of President William Ruto intends to impose a 3% tax on all salaried workers in the private and public sectors.
The three percent is double the rate proposed by Uhuru in his Housing Fund Levy, which was rejected.
Ruto defended the deduction by explaining that the 3% would serve as a guarantee to investors building the homes.
Additionally, he reassured Kenyans that they would be able to withdraw their funds after seven years.
From Grilling to Support: Hussein Mohamed’s Timeless Interview with Uhuru on the Housing Levy
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