New Headache for Ruto as Allies Poke Holes in His Plan

President William Ruto gives a speech during the centenary anniversary of Limuru Girls High School, Kiambu County, on May 20, 2023.
President William Ruto gives a speech during the centenary anniversary of Limuru Girls High School, Kiambu County, on May 20, 2023.
PCS

President William Ruto is staring at a new crisis after a section of politicians within the United Democratic Alliance (UDA) expressed dissatisfaction with the proposed 3% housing levy.

On May 19, differences between supporters and opponents of the housing fund played out in West Pokot between Deputy Governor Robert Komolle and Senator Julius Murgor who read from different scripts concerning the housing fund.

“In my view, I would propose the 3% housing levy to come around next year when the economy has stabilized.

President William Ruto at the groundbreaking of the Lapfund Bellevue Park Residence Project in Nairobi on Thursday, May 11, 2023.
President William Ruto at the groundbreaking of the Lapfund Bellevue Park Residence Project in Nairobi on Thursday, May 11, 2023.
PCS

“Our teachers and workers in the county government are not ready to make the contribution of 3 per cent,” stated Komolle.

On the other hand, Murgor stated that the Finance Bill 2023 which contains the proposed housing fund will pass without any alterations.

“Our president has stated that there are two ways: we pay taxes so that we sustain ourselves or we borrow loans and we sink as a country,” stated Murgor.

The split was also displayed by politicians from Central Kenya where the president enjoys wide support.

On May 16, Nyeri Town Member of Parliament, Duncan Mathenge, opposed the proposal that the housing fund be imposed on all workers.

According to him the housing fund should be voluntary and not forced on all Kenyans.

"We could amend the issue to the contribution to the housing fund and make it voluntary for those that feel it is attractive,” Mathenge explained. 

Public Participation

Dr. Brian Mutie, a governance and legal expert stated that the president would benefit from wider consultations in order to make the housing fund agreeable.

“There could be two tiers, one housing fund that is non-optional and a second one that is optional.

“Then he can make the non-optional more appealing than the optional one. That he can nudge people to choose it,” he noted.

He added that it was a good move by the president to seek to build Kenya using taxes rather than by borrowing.

“It is a good move because according to Article 43 of the Constitution, affordable housing is a key function the state has to provide,” he added.

Article 43 1 (b) of the Constitution states that “Every person has the right to accessible and adequate housing and to reasonable standards of sanitation.”

Housing Fund Discontent

Dr. Martin Oloo, a specialist in strategic leadership with more than a decade of experience in legal practice, stated that the president’s rationale for the housing fund was wanting.

“If you want people to invest in the housing fund, give them a house. Don’t tell them it is philanthropy.

“Why should it be compulsory? Maybe I have a house,” he stated.

He revealed that it was foreseeable to have arguments within the UDA.

“The whole thing is not well thought through. Politicians don’t have to agree on the same thing, they are supposed to also disagree with their party leader,” he added.

On Thursday, May 18,  Deputy President Rigathi Gachagua declared that UDA will exist for more than 100 years. 

“We are going to build a huge mass movement called UDA, a serious political machine that will be around for 100 years,” Gachagua told UDA coordinators from 47 counties during a meeting in Nairobi. 

Nandi Senator Samson Cherargei (left) speaks with President William Ruto (right) in Nandi County on April 29, 2023.
Nandi Senator Samson Cherargei (left) speaks with President William Ruto (right) in Nandi County on April 29, 2023.
Photo
Samson Cherargei