The Affordable Housing Programme is expected to employ hundreds of thousands of Kenyans as outlined by President William Ruto on Tuesday, March 19.
Speaking moments after assenting to the Affordable Housing Bill, President Ruto indicated that Jua Kali artisans would be among thousands of Kenyans who would work on delivering different housing units as envisioned in the program.
Housing and Urban Development Principal Secretary Charles Hinga who was attending the event remarked that the Jua Kali sector just like other stakeholders would pay their fair share of tax to Kenya Revenue Authority (KRA).
Hinga tasked a Jua Kali contractor who had bagged a Ksh122 million Affordable Housing contract to explain to the President how the tax would be paid.
Peter Muema Muthaka told President William Ruto that his Jua Kali group were given the Ksh122 million contract in 2018 which entailed fitting windows and doors to a Park Roads Affordable Housing Unit.
“When we were given the contract, KRA told us to pay tax and we refused,” Muema stated, adding that they thought they should not pay tax since they were working for the government.
When the housing units were near completion, they were invited to KRA offices and reminded to file their taxes.
Adamant they would not pay despite earning millions, KRA decided to deduct their last payment.
“Our last payment of Ksh26 million was all taken by KRA. They had contacted all banks to withhold the payment,” he told the President.
As such, the welders and fitters did not receive their final salary of Ksh17,500 each.
“KRA is now our good partner and we have come to realise the benefits of everyone paying their taxes dutifully,” he stated.
Going forward, all Jua Kali artisans must submit their taxes once they receive their cheque from the National Government.
“We now make all our fundis pay taxes, if they do not make prompt tax payments after receiving their salaries, we contact the Micro and Small Enterprise Authority (MSEA) who issue qualification certificates,” he explained.
