Rédaction Africa Links 24 with Kenyans.co.ke
Published on 2024-03-21 06:13:49
President William Ruto’s administration is set to receive Ksh10 billion monthly from the Housing Levy following the approval of the Affordable Housing Bill on Tuesday, March 19. This significant increase was communicated by Housing Principal Secretary Charles Hinga during an interview on Citizen TV the following evening. Hinga highlighted that this amount was Ksh4 billion more than the previous deductions, which were deemed unlawful by the courts in January 2024.
Before the court intervened, the monthly deductions had peaked at Ksh5 billion, with a government contribution of about Ksh1 billion, totaling between Ksh6 billion to Ksh6.5 billion. Looking ahead, Hinga estimated that the administration would be collecting anywhere between Ksh9 billion and Ksh10 billion each month. This increase in revenue is primarily due to the inclusion of non-salaried Kenyans in the payment of the Levy.
Under the new scheme, salaried Kenyans will have 1.5% of their salary deducted towards the Housing Levy. Individuals earning through partnership and consultancy fees will also have a 1.5% deduction imposed on their gross income. For those in the informal sector, the Levy will be deducted from the existing Turnover Tax. These deductions are effective immediately and must be reflected in the March 2024 earnings.
Employers are required to submit their deductions to the Kenya Revenue Authority by April 9. President William Ruto, upon assenting to the Bill, emphasized that it would create employment opportunities for thousands of Kenyans who would work in the housing units. Furthermore, with a target of building 200,000 housing units annually, Ruto envisions the housing sector becoming a key contributor to the Kenyan economy.
Hinga elaborated on Ruto’s vision by comparing the housing market in the US, where it exceeds the stock exchange market, and China, where 40% of the economy is attributed to housing. This underscores the potential for the housing sector to drive economic growth in Kenya.
President Ruto’s strategic partnerships, such as the one with Chinese President Xi Jinping, demonstrate a commitment to furthering the housing agenda and creating a robust housing market in Kenya. This initiative aims to not only address the housing deficit but also stimulate economic activity and create sustainable employment opportunities for the country’s citizens.
In conclusion, the increased revenue from the Housing Levy will not only fund the affordable housing agenda but also boost economic growth and provide much-needed housing solutions for Kenyans. President Ruto’s administration is laying the foundation for a thriving housing sector that will benefit both the economy and the citizens of Kenya.
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