Machakos Town MP Caleb Mule on Tuesday June 20, proposed additional amendments to the Finance Bill 2023 aimed at restricting the government's utilization of funds collected from Kenyans for the Housing Fund.
While tabling his proposal, Mule urged his colleagues to ensure that the collected funds are solely utilized for housing construction and related projects. His proposal aimed to establish guidelines for President William Ruto's use of the funds, directing that they be allocated specifically for housing initiatives.
"The Affordable Housing Levy shall not be used for any other purpose other than the development of affordable housing and associated social and physical infrastructure as well as the provision of affordable home financing to Kenyans," the legislator proposed.
Kabuchai MP Majimbo Kalasinga, on the other hand, proposed that the contributions be made voluntarily - a move that will see the Head of State collect below his Ksh83 billion target.
The lawmaker also proposed to have deductions set at 1.5 per cent of the basic salary as opposed to the gross salary as contained in the bill.
Kalasinga advocated for a cap of Ksh3,000 on the joint contribution made by both the employer and employee.
"An employee may opt to increase their contribution into the fund by writing to the employer and the cabinet secretary responsible for matters of housing, specifying the higher monthly per centum in their respect above the rate prescribed in subsection.
"Where an employee opts to make a higher contribution under sub-section, the employer shall not be required to make a corresponding contribution," read the amendments in part.
Additionally, the lawmaker proposed that Kenyans should be allowed to claim their contributions with interest after seven years.
"A contributor to receive their contributions in cash at the prevailing interest rate: Provided that contributions paid out in cash shall be included in the contributor’s taxable income for the year and be subjected to tax at the prevailing rates," he added.
Kimilili MP Didmus Barasa also proposed that Kenyans who have contributed to the fund should have the opportunity to enter into a joint purchase agreement. This proposed amendment would enable couples to embark on housing ventures together.
“Provided that an employee who has accumulated contributions may enter into a joint house purchase agreement with another contributor to the Fund to finance the purchase of a home under the affordable housing scheme,” Barasa proposed.
