There has been opposition from the public from the housing levy introduced by president Uhuru with questions including the fate of people in mortgage plans and if it necessary for Kenyans who own houses to make the contributions.
The Consumers Federation of Kenya (COFEK) has filed a suit challenging the government’s decision to implement the Housing Fund levy saying it is illegal and will lead to unjustified over-taxation.
The deduction became law following the enactment of the Finance Act, 2018 that following the budget statement presented to Parliament by Treasury Cabinet Secretary Henry Rotich.
But in reaction, Kenyans took offence with Article 25 of the Act which states that anyone who misappropriates the housing fund will be liable to imprisonment for two years or be made to pay a fine not exceeding Sh10,000 or both.
Kenya Union of Post-Primary Education Teachers (Kuppet) Kisumu branch Executive Secretary Zablon Awange said the proposed deduction of 1.5 per cent of their basic salaries is illegal.
“It is not only illegal but also unconstitutional and inappropriate levy that teachers cannot afford bearing in mind most teachers’ pay slips have less than Sh10,000 net salaries,” Mr Awange said.
He said the teaching fraternity will resist “this new attempt to fleece teachers under the guise of affordable housing”.
Teachers have built better houses in locations of their choices without the government’s assistance. So why now?” he posed.
The Teachers Service Commission’s (TSC) policies such as delocalisation and other economic factors such as dynamic mobility of labour coupled with constant job transfers, he noted, will render the scheme “yet another jubilee white elephant”.
“We rejected it in Kisumu Kuppet AGM as teachers and later at the national annual delegates conference hence the government cannot force us into the so-called affordable housing,” added Mr Awange.
He went on: “Are teachers currently living on trees and in caves to warrant the government’s intervention? Let the government get its priories right. On housing, it is a misplaced priority.”