'It will be a tax not levy!' MP Kimani Kuria now reveals on Housing Fund

Speaking on Citizen TV, Kimani announced that the contentious Housing levy would be a tax and not a levy, appearing to backtrack on an earlier statement by the government.

Housing PS Charles Hinga previously strongly denied that there was any intention to have the mandatory contribution to the Affordable Housing programme converted into a tax.

According to Kimani, however, the so-called Housing levy was amended into a tax following requests from Kenyans during the public participation exercise for the Finance Bill 2023.

"The initial provision as contained in the Bill said that this (Housing Fund) would come into effect after the passing of regulations, and how those regulations oversaw this is that for example you would get your money after 7 years and Kenyans were asking, 'I'm I sure I'm going to get my money after 7 years'? Kenyans actually called it a tax," said Kimani Kuria.

"The housing levy is a tax. We are calling it a levy. We are ringfencing it to make sure it goes to building affordable housing..."

The MP further stated that the houses that would be built using the housing fund would be constructed by the State Department of Housing and not private investors as earlier indicated.

He also confirmed that the Housing Levy contribution by employers and employees has been reduced from 3 to 1.5 per cent, effective as soon as the President ascends to the bill if it passes through parliament. 

With the House Business Committee having approved the debate schedule of the Finance Bill 2023 on Wednesday, a showdown looms between the ruling Kenya Kwanza and Azimio la Umoja legislators who are opposed to the Bill.