Gatundu South MP Moses Kuria has come up with a plan to save Kenyans from the burden of paying a housing tax to fund President Uhuru Kenyatta's Affordable Housing project.
The decision to effect the levy on April salaries was met with opposition from many Kenyans who accused the government of overtaxing its citizens.
"I hear loud and clear that the workers of this country do not want to bear the burden of making this project work alone.
"They say they are very few of them in formal employment to bear the burden of the vast majority who are not formally employed," the vocal MP noted.
In Kuria's view, the money collected from the housing tax was meant to unlock capital markets and give confidence to investors who have pledged to pump Ksh2.6 trillion into the economy over the next five years.
The MP, therefore, stated that he would be reaching out to his colleagues in Parliament to make an irrevocable commitment to transfer Ksh20 billion from Treasury to the Housing Development Fund every year for the next 10 years.
The money transferred would then give the private investors confidence needed to release the Ksh2.6 trillion into Kenya's economy.
"This way we will not need to levy the small minority of Kenyans in formal employment, all Kenyans will pay for this noble project and we will stimulate the economy and create millions of jobs," Kuria explained.
ICT Cabinet Secretary Joe Mucheru, on Wednesday, defended the housing levy, terming it an investment because those who fail to get the promised houses will get their money back with interest.
The directive, issued by the Transport Ministry in conjunction with KRA, requiring mandatory contributions by employers and employees towards the Housing Fund, was suspended by a High Court until May 20, 2019.
Implementation of the Housing Fund Levy was pushed until a case that was filed by the Consumers Federation of Kenya (COFEK) is heard and determined.
