Omtatah pokes holes in Ruto's Housing Levy proposal

Busia County Senator Okiya Omtatah has weighed in on the ongoing debate on the Housing Fund proposal.

Speaking during an interview at K24 on Tuesday, Omtatah said counties are likely to be compelled to give land for free to developers. 

"The land where they are going to put these houses is going to be given for free to developers, they will not pay taxes for it," he said.

The Housing Fund proposal has drawn mixed reactions from leaders and Kenyans.

The Housing Fund is one of the proposals by President William Ruto in the Finance Bill 2023 that seeks a three per cent contribution from employees and employers.

On June 2, Omatatah moved to court seeking orders to suspend the debate on the Finance Bill.

He argued that some of the sections in the Bill violated the Constitution.

"The power to impose taxes is not absolute, it is a donated power by the people to the executive and they deposit it not to the Executive but to the parliament," he said.

"Article 209 and 210 of the Constitution states clearly that taxation can only be done as provided by the legislation… That power cannot be donated to any other organ."

Accusing the Parliament of "being in bed" with the Executive,  he said passing the Bill and imposing the three per cent House Levy on Kenyans will amount to a gross violation of national values.

"The way the Executive is talking is like Parliament does not matter. Instead of proposing and leaving it to Parliament, they are saying it will pass whether we like it or not. The Executive only requests Parliament for taxes, it does not bulldoze," Omtatah said.

The matter was filed under a certificate of urgency.

Omtatah has said a number of Kenya Kwanza MPs have supported his move to file a petition against Finance Bill 2023.

He added that one of the MPs allied with the ruling Alliance has even financed his plea.

Ruto called upon the Kenya Kwanza legislators to pass it while the opposition leader Raila Odinga has urged Azimio MPs to reject it.