Salaries of public and private sector employees are set to go down by 1.5% as the government begins deduction of Housing Fund Levy to fund the Affordable Housing Pillar under the Big 4 Agenda.
In a newspaper advertisement on Tuesday, the Housing ministry and the Kenya Revenue Authority announced that the housing fund levy “has come into effect”, meaning every employed Kenyan must remit 1.5 percent of their basic salary for April to the National Housing Development Fund.
An uproar has risen from the already over burdened Kenyans over the pocket disturbing news.
“Without regulations in place for the implementation of the Housing Fund Levy, the government is still going for it thus coming month. What’s the rush? Where is the framework?” another citizen has questioned.
In 2018, the Central Organisation of Trade Unions poked holes in the government’s National Housing Development Fund, opposing deduction from employees’ salaries before the necessary regulations and structures are in place.
Secretary-General Francis Atwoli said the fund meant for building low-cost houses has the makings of a scam. It is not clear what role employers and workers would play in the management of the fund, he said.
The governance structure of the fund, its implementation modalities and how companies with housing plans for their employees will be treated are also not clear, Mr. Atwoli said.