Government Embraces Flexibility in Housing Fund: A Welcomed Relief
Charles Hinga, the principal secretary for housing, announced on June 6 that the Housing Fund would be modified to reflect the diverse perspectives of various stakeholders.
The PS emphasized before the Finance Committee of the National Assembly. That changes would be made to the fund, which consists of a 3% monthly deduction, to benefit Kenyans.
Hinga was tasked with explaining how the controversial fund would increase homeownership. According to reports, Kenyans doubted the project from the beginning. And the government’s public awareness strategies fell short of their objective.
Hinga stated, “We may disagree on the approach, and there are contentious issues in the bill that must be resolved, and I hope this committee will do so.”
“We can fix it, but let’s not lose sight of why we’re advocating for it in the first place. We are taking this action because we have reached a crossroads,” he continued.
He urged the committee to defend the Finance Bill’s fund and amend it before the Second Reading, without eliminating the tax.
According to the PS, a contributor who is terminated would have access to the funds upon retirement. Thus, he emphasized that it was not a tax, but rather a levy backed by President William Ruto.
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Hinga explained that one of the alterations for which he was advocating was the inclusion of all Kenyans eligible for contribution and receiving homes. He clarified claims that only employed Kenyans would contribute to the fund.
“If you are a parent but already have a home, you may want to contribute for the sake of your child,” he urged.
President Ruto defended the deduction on May 11, claiming he was eager to keep his campaign promises to Kenyans.
Ruto also criticized leaders who oppose the fund despite having used it to consolidate votes during the campaign.
“We told Kenyans everywhere we went during the campaign that there was a housing plan that would give them employment opportunities and allow them to own homes,” the President said at a Thanksgiving service in Narok on June 4.
Thus, he dared MPs to oppose the project and threatened to track them down if they did so. However, his remarks did not bode well with the opposition. Which threatened to organize mass protests if the housing fund and the controversial Finance Bill 2023 passed.
Government Embraces Flexibility in Housing Fund: A Welcomed Relief
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