PS Dismissed from MPs Meeting Over Controversial Housing Levy

26, May 2023 / 2 min read/ By Livenow Africa

Housing Principal Secretary Charles Hinga faced a challenging situation when he appeared before the Finance and National Planning Committee, led by Molo MP Kuria Kimani, to discuss the controversial housing fund.

During the meeting held at the Hilton Gardens Inn Hotel along Mombasa Road, the committee sought clarification on the financing and management of the affordable housing plan, which involved mandatory deductions from taxpayers.

Lawmakers raised concerns about the fund's management, interest earned by contributors, and the necessity of imposing taxes when similar programs had been implemented previously without such deductions.

As the session opened for questions, Baringo North MP Joseph Makilap criticized the ministry for not considering the economic situation of the majority of workers.

MP Makilap questioned the source of funds for the project, pointing out that it had been running for five years without imposing taxes on Kenyans. He suggested that the housing scheme should continue without a compulsory housing fund, as it would burden citizens with additional taxes.

"You indicated that you have been doing this project for about five years. Where did you get the money to do this without taxing Kenyans? Why don't you continue to do it without taxing Kenyans through a compulsory housing fund?" Makilap questioned.

Other MPs, including Adipo Okoume, John Ariko, and David Mboni, also expressed concerns, highlighting the contradiction between the housing scheme and cultural practices of many communities.

Dr. Ariko emphasized that making the housing levy compulsory effectively turned it into a tax.

"Making this housing levy compulsory makes it a tax. Anything that is not compulsory is a tax," Dr. Ariko stated.

As Charles Hinga struggled to provide satisfactory answers, the frustration among the lawmakers grew. Chairman Kimani sarcastically suggested that Hinga attend to his other commitments and abruptly ended the meeting.

Chairman Kimani assured Hinga that there would be another opportunity to address the remaining questions at a later time.

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