Housing and Urban Development Principal Secretary (PS) Charles Hinga now says that there is room for the controversial Housing Fund to be amended before the second reading on Thursday.
Speaking on Tuesday June 6 while appearing before Parliament’s Finance and National Planning Committee, Hinga challenged the committee to use its powers and make necessary changes to the Finance Bill 2023.
While the Kenya Kwanza administration has stated that the bill will be adopted without amendments, the PS looks to be open to a few tweaks here and there.
“We may disagree on the approach and there are contentious issues in the Bill that need to be cured and I hope this Committee will do so. We can correct it but let’s not lose focus of why we are doing this. We are doing this because we have come to a point of reckoning,” said Hinga.
The housing levy has been criticized for discriminatory policies that appear to favor the rich over the poor, a lack of clarity over its governance structure and the safety of the funds collected, as well as the criteria that will be used to determine who qualifies to benefit from the affordable houses that the government intends to build using the fund.
However, according to sources, behind-the-scenes negotiations between the government and the employers have resulted in the government ceding ground and discussing the possibility of lowering the levy by one percent to bring the proposed rate to 2%.
The Finance and National Planning Committee is scheduled to meet on Wednesday to write its report, with sources indicating that the Finance Bill could be amended to reflect the opinions of stakeholders.
The bill will tabled at the National Assembly on Thursday June 8, 2023.
Also Read: PS Hinga Slams Raila Over Making U-Turn On Housing Levy
