Make housing levy optional, Governor Timamy urges Ruto

Lamu Governor Issa Timamy has urged President William Ruto to make the proposed Housing Fund levy optional.

He said it is unfair for the fund levy to be imposed forcefully on Kenyans as some people have built homes.

Speaking in Lamu on Monday, the governor said many Kenyans are already grappling with the high cost of living, with some servicing loans they took to build houses for themselves.

He said the housing levy is not only ill-timed but also inappropriate and unnecessary.

“The three per cent housing levy is a brilliant plan. However, I'm of the opinion that it should not be forced on everyone. It shouldn’t be compulsory either but rather optional for those willing. It’s not useful to those who already have decent housing. It's however perfect for Kenyans who don’t have decent houses,” Timamy said.

Majority of civil servants in the country have opposed the plan, citing the high cost of living. They say the levy will add more burden to an already overburdened and struggling population.

Last week, the Kenya Union of Post Primary Education Teachers (Kuppet) Lamu branch rejected the Finance Bill, 2023, which proposes a three per cent housing levy deduction on gross earnings into the National Housing Development Fund.

Lamu Kuppet executive secretary Edward Mbuthia said their members had not received a salary increment and any deduction to their pay will directly affect their morale and throw them into a financial crisis.

He said such will also cause most of them to end up receiving only a third of their basic salary, which he said is against the law.

Mbuthia said more than 80 per cent of their members had acquired loans from banks and Saccos to build homes and are currently servicing the loans.

He said they do not need more houses.

Mbuthia said the government recently implemented 7.5 per cent deductions for public service superannuation scheme (PSSS) on teachers’ salaries which automatically reduced their net pay.

The official said with the hard economic times the country is currently facing, it has become impossible for members to meet the basic needs of their families.

He said any further deductions will trigger depression among members.

The Bill is currently in the National Assembly.