Nairobi Senator and Senate Deputy Minority Whip Edwin Sifuna
National News

Senator Sifuna On Housing Fund Levy: It is a scheme to collect money, no houses will be built

Nairobi Senator Edwin Sifuna has voiced his concerns regarding the proposed Housing Fund Levy associated with the Affordable Housing Programme.

In an interview with Radio Citizen on Wednesday morning, Senator Sifuna boldly said that the government’s intentions behind this initiative are far from the promised goal of constructing affordable houses. Instead, he claims that it serves as a mere ploy to collect funds from the public, thereby accusing the government of deceiving Kenyans by exploiting the housing programme for monetary gain.

“These people have no plan to build these houses. I can assure Kenyans that no houses will be built, they want to use this fund to do what we call cash flow management because we are in a hole as a nation,” Sifuna said.

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The legislature put forth a compelling argument, highlighting the government’s lack of transparency in elucidating the operational details of the scheme, particularly concerning the individuals obligated to contribute to it.

“Instead of telling Kenyans the truth they want to deceive us that it is those ones with payslips who are refusing to contribute money,” he said.

President William Ruto has reaffirmed his belief that the Housing programme holds the key to addressing Kenya’s housing, employment, and manufacturing challenges. In light of this, the President asserts that concerns surrounding its governance should not impede its implementation. However, the proposal has sparked intense controversy, as different factions within the country have argued that the scheme may inadvertently facilitate corruption.

To address some of the apprehensions, the Housing Levy contributions, initially set at 3 percent, have been reduced to 1.5 percent for both employers and employees. This adjustment is poised to take effect as soon as the President approves the Finance Bill 2023, following its parliamentary approval.

“The second thing they lied about is that it’s only government workers who will contribute to the housing levy. The truth of the matter is that everyone who has been employed will pay the levy.

“And the government workers do not exceed 700,000. The bulk of employment in this nation works in the private sector so nobody should lie to you that this levy will help build houses. We are asking them hard questions. Even the housing PS cannot explain how this plan will work.”

President William Ruto has reaffirmed his belief that the Housing programme holds the key to addressing Kenya’s housing, employment, and manufacturing challenges.

In light of this, the President asserts that concerns surrounding its governance should not imped its implementation. However, the proposal has sparked intense controversy, as different factions within the country have argued that the scheme may inadvertently facilitate corruption.

To address some of the apprehensions, the Housing Levy contributions, initially set at 3 per cent, has been reduced to 1.5 per cent for both employers and employees. The adjustment is poised to take effect as soon as the President approves the Finance Bill 2023, following its parliamentary approval.