Machakos Governor Dr Alfred Mutua has urged the national government to put on hold the implementation of the 1.5 per cent housing levy, citing the need for economic stability before such measures are introduced. Speaking to the media at a hotel in Mombasa, Dr Mutua expressed concern over the timing of the levy, highlighting that Kenyans are currently grappling with severe economic hardships. He noted that the introduction of the levy would exacerbate the financial strain on citizens who are already struggling to cope with the high cost of living.
Governor calls for housing levy pause
While Dr Mutua supports the initiative's goal of providing Kenyans with decent housing, he is critical of the manner in which the levy is being rolled out. He emphasized the importance of involving stakeholders in the decision-making process to ensure transparency and public buy-in. "We have no problem with the idea, but what we are worried about is the way it is being imposed on Kenyans without giving them the forum to debate it exhaustively and correct all grey areas," he stated.
The governor pointed out that many Kenyans are facing challenges such as drought and hunger, making the levy an additional burden that could have adverse social and economic impacts. He was accompanied by his deputy governor, Francis Maliti, during the media briefing. Dr Mutua also addressed the issue of corruption, suggesting that it could be curtailed if County Assemblies refused to pass key expenditure budgets until county officials underwent lifestyle audits. "All leaders should be ready for a lifestyle auditing. I urge MCAs not to approve budgets until county leaders accept a lifestyle auditing," he added.
Concerns over economic impact
Dr Mutua further insisted that the planned gazettement of the levy, set to commence in May, should be retracted until comprehensive stakeholder engagement is conducted. He raised concerns about the integrity of the levy, questioning how the funds collected from taxpayers would be managed. The Housing Fund Levy is intended to support the Affordable Housing Scheme, a key component of the government's "Big Four" agenda. Under the levy, employers are required to deduct 1.5 per cent from employees' salaries monthly and remit the funds to the National Housing Development Fund.
Need for stakeholder engagement
The governor's call for a suspension of the levy underscores the broader debate on balancing development initiatives with the immediate economic realities facing Kenyans. As the government pushes forward with its ambitious housing agenda, the need for dialogue and transparency remains paramount to ensure that the benefits of such programs are realized without undue hardship on the populace.
