Don't over-tax Kenyans to fund housing project, state urged

Mathioya MP Peter Kimari has asked the government to look for other ways to raise funds for the low-cost housing project instead of taxing Kenyans.

The MP said Kenyans are already overburdened with taxes and a high-cost of living.

The government intends to build 500,000 houses estimated to cost Sh1.3 trillion by 2022 as part of its Big Four agenda.

Kimari said he does not understand why the government wants to impose 1.5 per cent tax on Kenyans, yet investors have been identified to support it.

“Why do we then need to create another fund when several foreign contractors have committed to build the houses once the government provides land?" Kimari asked.

The issue of raising more money from Kenyans when they are overburdened with taxes, does not make sense, the MP said.

Kimari, however, praised the project, saying it is a good initiative that should be implemented fully even after President Uhuru Kenyatta’s term ends.

“The entire batch [500,000 units] does not have to be done at the same time. Completing them in three years will be a challenge,” the MP said.

The MP said many Kenyans lack houses and the few who have taken mortgages indicate there is a huge problem in the sector.

“Only less than 10 per cent have mortgages in Kenya, yet in developed countries more than 50 per cent of people buy homes through mortgages,” Kimari said.

He said many Kenyans pay monthly rent of up to Sh10,000, and they should be encouraged to convert it into monthly mortgage payments.

Kimari urged the government to put in place policies that will ensure the project only benefit the underprivileged.

Through the project, Kenyans will acquire affordable housing and contractors will only sell them at a certain agreed amount.

“Let the houses be done and those interested be registered, so they can be well spread in the country,” he said.