With President William Ruto keen on establishing the Housing Fund as his legacy project, the National Assembly Finance Committee has proposed three changes to the fund in response to public outcry.

The first change is to enact a legal framework detailing how the government would collect the 3% salary deductions before implementing the fund. This is in response to concerns that the government does not have a clear plan for how it will use the funds.

The second change is to allow contributors to withdraw their salary deductions and those of their employers together after seven years. This is in response to concerns that the government would not allow contributors to access their money for a long period of time.

The third change is to remove the taxation of withdrawals. This is in response to concerns that contributors would be taxed on their savings when they withdraw them from the fund.

The committee is set to discuss the proposed changes over the weekend and is expected to make a final decision on them before the Finance Bill 2023 is passed. If the bill is passed, the Housing Fund will take effect from July 1.

The proposed changes have been welcomed by some stakeholders, but others have expressed concerns that they do not go far enough. The Kenya National Union of Teachers (KNUT) has called for the deduction to be reduced from 3% to 2%, while the Federation of Kenya Employers (FKE) has said that the government should provide more clarity on how it will use the funds.

It remains to be seen whether the proposed changes will be enough to appease the public and ensure the smooth implementation of the Housing Fund.

Here are some additional details about the proposed changes:

• The legal framework would need to specify how the government would collect the 3% salary deductions, how it would use the funds, and how it would ensure that the funds are used for their intended purpose.
• The proposal to allow contributors to withdraw their money after seven years would give them more flexibility in how they use their savings.
• The removal of the taxation of withdrawals would mean that contributors would not have to pay any tax on their savings when they withdraw them from the fund.

The proposed changes are a positive step towards ensuring that the Housing Fund is implemented in a transparent and accountable manner. However, it is important to note that the devil is in the details, and it will be important to ensure that the government follows through on its commitments.