Editor's Review

"The housing levy is no longer a levy, it is a tax," MP Kuria Kimani. 

Molo Member of Parliament Kuria Kimani, who is the Chair of the Finance Committee, has disclosed that the Housing fund is no longer a levy but a tax.  

Speaking on Citizen TV on Tuesday, the legislator noted that they're making it a tax and making sure it goes to affordable housing. 

"The housing levy is no longer a levy, it is a tax. We are making sure that it goes to building affordable housing. The State Department of Housing will implement the building of affordable housing," Kuria said. 

Kuria's admission comes barely days after UDA Secretary General Cleophas Malalah disclosed that the Housing fund had been reduced from the proposed 3% in the Finance Bill 2023. 

“The Housing Fund contribution has been reduced to 1.5 percent from the proposed 3 percent,” Malalah tweeted. 

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Molo Member of Parliament Kuria Kimani

The Housing Fund has created a national debate in the country with a section of Kenyans opposing it. 

Housing PS Charles Hinga had initially said that someone can withdraw the funds after seven years. However, this might no longer be the case after Kuria said it would be ringfenced to a tax. 

"After seven years, if you don't have a house you can withdraw the money but we are also telling you that you can transfer it from the Housing fund to your retirement savings and it will not be taxed. Only the withdrawal as cash will be taxed," Hinga said in a past interview.