President William Ruto's administration experienced a smooth session in Parliament on Wednesday, June 21, after the Finance Bill, 2023, effortlessly secured the support of 184 lawmakers, resulting in its successful passage.
The Parliamentary Finance and Planning Committee, led by United Democratic Alliance (UDA) stalwart and Molo MP Kuria Kimani, introduced amendments to the report, which were incorporated into the Finance Bill, 2023.
Of particular significance was the resounding approval of the Housing Fund tax, which stipulates that both employers and employees will be required to contribute a combined 3 percent towards the implementation of the Affordable Housing Program.
The housing tax received overwhelming support from lawmakers allied to the Kenya Kwanza Coalition, securing 184 votes in favor, while 72 lawmakers opposed it.
Shortly after its successful passage, Homa Bay Town MP Peter Kaluma highlighted a significant flaw in the entire process.
The vocal politician noted that the National Assembly was not mandated to discuss housing matters without the input of the Senate.
“MPs in National Assembly (NA) whose entire salary is mortgaged have imposed 3 per cent housing tax on employees and employers despite housing being a county function requiring Senate participation,” he observed.
According to the 2010 Constitution, it is the mandate of county governments to ensure that land in their jurisdiction is used prudently.
“County governments have the responsibility to ensure that land set aside for public use is not misused,” the law states.
Given that the affordable houses will be situated on land donated by the counties, it was expected that such a crucial matter would be deliberated by the Senate before introducing the tax for the program.
As per the provisions of Article 96 of the Constitution, the Senate serves as the representative body for the counties, with the primary responsibility of safeguarding their interests as well as those of their respective governments.
On Wednesday, June 8, Trade CS Moses Kuria argued that the Affordable Housing Program was not a national government project.
“The government does not own it. It is going to be implemented in the counties with our 47 governors being the owners,” he stated.
