President Kenyatta has defended the proposed 1.5 percent levy deducted from the salaries of every Kenyan employee to go towards funding the affordable housing project.
President Kenyatta says Kenyans should view the levy as a way of saving rather than a tax even as he assured workers that the cash will be in safe hands.
“We are not forcing agenda on people, but we are in talks so that we can present the ideas for them to contemplate on,” Kenyatta said during a roundtable interview.
“New programs suffer misgivings and clarity but let those who are not sure about the agenda speak out and tell us their fears, all we are encouraging a saving culture versus spending culture.”
Uhuru notes that there has been a lot of misinformation about the contribution, stating that workers who will not get houses under the program will get their money back.
“I want to assure Kenyans that this is not about tax as it has been made to look, but saving and a contribution towards owning a house.”
Last week, the government suffered a blow after the high court suspended implementation of the levy pending hearing and determination of a case filed by Central Organization of Trade Unions (Cotu).
The union argues that the levy is unconstitutional and amounts to double taxation. It also avers that the government didn’t engage workers in making the decision on the contribution.
“The petitioner is aggrieved that its unconstitutional and legally invalid to subject Kenyans to double taxation by imposing the 1.5% housing development levy on basic salaries,” Cotu says in court documents.
Under the low-cost housing program, President Kenyatta’s administration hopes to build at least 500,000 houses by 2022.
The project is one of Kenyatta’s Big Four Agenda alongside manufacturing, universal healthcare, and food security.
That should be optional. …
That should be optional. Let those who want to contribute do it at their own will.
Any deduction from ones…
Any deduction from ones earnings should be voluntary. Let people sign up for the program first.
Also, first prove all other public monies are safe and accounted for before you issue promises about the safety of the new funds.
UhuRuin should pay for these…
UhuRuin should pay for these Houses because:
According to SRC, “Uhuru Kenyatta’s monthly salary is fixed at Ksh 1,650,000 per month. This salary is basic, implying that allowances are not inclusive.Per year, the president earns more than Ksh 20 million without payee and allowances. Deputy President, William Ruto, also earns comfortable salary. According to SRC,his monthly salary is Ksh 1,487,500 which excludes allowances.” This is INSANE.
A government that cannot…
A government that cannot account for 67% of the taxes it collects wants to burden suffering Kenyans with more taxes. More money to loot. More money to steal.
He said he will continue borrowing for development. Why isn’t he borrowing money for this? Is it because the lenders have seen the writing on the wall for this borrow and steal jubilee government?
Kenyans are already saving with co-ops, chama, bank etc Try and come up with another dubious reason.
Tusker badala ya kazi kila siku!
Government is provider of…
Government is provider of goods and services that individuals cannot provide individually for themselves. If Low-cost housing is one such service, it should be without collective compulsion. On the other hand people cannot afford decent housing because the government has not provided infrastructure for citizens to flourish socially and economically. It has not adequately cushioned the people from high consumer costs and risks, exploitation and aversion of impunity and corruption. Majority of kenyan people have fended for themselves for so long, that when the government comes up with these Soweto-type of projects;no one is excited much about it. Looking at other countries where such projects have been initiated, ruins and crime are abound despite the structured appearances.