No reprieve for hustlers as Ruto MPs pass housing levy

President William Ruto’s troops on Wednesday railroaded their Azimio counterparts to pass the law anchoring the contentious housing levy.

The Bill will now move to the Senate for speedy approval at the various stages.

This was part of efforts to expedite the proposed law to anchor the housing levy which was nullified by courts.

In a move that hands no reprieve to employees and employers, Kenya Kwanza has planned to accelerate the approval as directed by the President at the retreat in Naivasha.

The Star has established that the grand plan is for the law to be in place within the current financial year.

An appellate court on January 26 rejected the government’s bid to continue collecting the levy under the tax law.

However, the speed at which the legislation is being executed has unsettled those against the levy.

Opposition lawmakers staged a walkout during the consideration of further amendments to the Bill in plenary.

The Raila Odinga’s troops accused Speaker Moses Wetangula of dictating them on how to prosecute the Bill.

The Azimio compatriots stormed out of the chamber after their amendments were not considered.

"Azimio filed several amendments, some yesterday and some today morning. Unfortunately, it looks like there are some instructions from Kenya Kwanza regime that this bill be passed without amendment," Minority Whip Junet Mohamed said.

According to the Suna East MP, the Executive has captured Parliament to rush and push through the Bill.

"This Bill does not only affect Kenya Kwanza people but all Kenyans," he said, citing strong-man tactics to arm-twist and intimidate MPs.

Nominated MP John Mbadi said they could not participate in the making of “a law which would hurt Kenyans”.

“This is pure dictatorship. This is the true element of the current President. We are now seeing the real Ruto,” the MP said.

The team left no doubt they would join petitions against the housing levy after assent by the president.

Rarieda MP Otiende Amollo warned that the rush would cause problems for the Bill, pointing out that the proposed law has several unnerving gaps.

“While it may be well-intentioned, the Bill requires proper discussions at the drafting stage. It is premature and is being rushed and will end up in problems,” he said.

An appellate court on January 26 rejected the government’s bid to continue collecting the levy under the tax law.

But Majority Leader Kimani Ichung’wah dismissed the assertions saying the proposed law has taken considerable time in the approval stages.

“We sat until 7 pm and I listened to all the contributions by the members. There is no point it was rushed,” the Kikuyu MP said.

He stated:

“Those who have been opposing this bill have a vested interest in rental units and fear the law would jeopardize their business. The housing gap is huge so landlords like me don’t need to fear.”

Kenya Kwanza troops outnumbered their Azimio counterparts to approve further amendments to the proposed law.

In the changes, Ruto troops reintroduced the requirement for persons seeking to occupy a unit to pay a deposit.

While the original legislation proposed a 10 per cent deposit on the unit price, the new provision gives discretion to the Treasury Cabinet Secretary.

Employers and employees who default in remitting the levy would be subject to tax recovery procedures in the current law – court or mediation.

MPs also voted to empower the fund board to allocate money to institutional housing and for off-take of housing projects.

Loans would be paid on reducing interest, with the new dispensation barring buyers from changing units aimlessly.

Crimes committed in the cause of the execution of the affordable housing plan or administration of the levy would attract a mandatory fine.

Azimio-affiliated lawmakers, however, held that there were many gaps with the legislation as proposed, calling for more time.

Among their concerns was that KRA would harass people, including informal sector workers.

Otiende argued that since the Bill does not prescribe policy, it remains unconstitutional.

Among the red flags the proponents are grappling with is that the Bill is creating an entity to collect the levy other than KRA.

“The collector of taxes is KRA but the Bill authorises any other person to collect. We are enabling an entity to collect government taxes and allowing it to retain two per cent of the money?” Amollo asked.

PAC chairman John Mbadi said the proponents have created a bigger problem with the Bill.

“It will be a nightmare to impose this levy on people. KRA will harass Kenyans including farmers whose produce will attract a levy, worse off the gross income,” Mbadi said.

But the Bill’s proponents led by Molo MP Kuria Kimani said the fears have been addressed in the amendments.

“The land issue has been addressed. We have provided that all transfers of land from public to private will follow the Land Act,” he said.

Githunguri MP Gathoni Wamuchomba also moved amendments in a bid to delete several sections of the Bill but her colleagues shot them down.

She targeted 22 clauses including those staging the levy and associated penalties and those creating a board to manage the Fund.

The Kenya Kwanza MP sought that the fund be managed by the National Housing Corporation, further suggesting that 70 per cent of the monies be allocated to the development and off-take of social housing units.

Turkana South MP Ariko Namoit and his Seme counterpart James Nyikal sought that the levy be pegged on net pay, not gross salary.

Their amendments were not carried out after Kenya Kwanza unleashed its numbers against the opposition to stamp the proposed law.