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The Federation of Kenya Employers (FKE) has dismissed a notice by the government announcing the implementation of 1.5 percent housing levy on all workers starting next month.
In a statement, the body says the notice is illegal since a court order that suspended the implementation of the levy up to May 20th, 2019 is still active.
“The Federation of Kenya Employers (FKE) attended Court on April 8, 2019 for the further mention of this case and obtained an extension of the Court Orders suspending the implementation of the Housing Levy up to the 20th of May 2019 when the case will come up again for mention for further directions from the Court on the Hearing and determination of this case,” FKE says in its statement.
In a notice on Tuesday, the Ministry of Transport, Infrastructure, Housing, Urban Development, and Public Works in conjunction with the Kenya Revenue Authority (KRA) instructed employers to remit the Housing tax by the 9th of every month starting May.
"Both the employer and employee shall each contribute 1.5% of the employee's monthly basic salary, provided that the sum of the total monthly contributions shall not exceed Sh5,000. Voluntary contributions may also be made to the scheme at a minimum of Sh2,000 per month," the notice says.
“The Housing Fund shall be used to finance the Affordable Housing Scheme under the Big 4 Agenda."
Under the housing scheme, President Kenyatta's administration is seeking to set up 500,000 low-cost houses by 2022.
FKE CEO Jacqueline Mugo says: “The Gazette Notice is therefore unlawful and we shall keep you posted on any further developments.”
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Kenyans are saving and building their own homes. This is a scam by the boy in statehouse. All the projects that the digital duo promised are either dead, dying or never took off. UHC and housing are scams.
Borrow from China...Waste. 'Borrow' from the Italian Mafia, and pay billions for dams that don't exist. The new rule is borrow and waste, then borrow some more to waste even more. Apart from the fact that this is a forced deduction, there is nothing in the public dormain about how the money will be managed. If it will be done by private companies, how is it different from the National Housing Corporation? If it will be done by the Government, why not call a Spade a Spade, and call it a tax, on top of other existing taxes? By refusing to give it its true name, it avoids being scrutinized, and is ripe to misused, and wasted.
Uhuru always complained that Joho was always on his case, following him around. I was tempted to ask Jamama whether he took up this role, after the 'handshake'. But you cannot argue with logic. The first Eurobond, which sunk Kenya into debt, has never been accounted for. But now there are plans for another one. How can you take on a new debt, if you don't have, or cannot see, what you bought with the older ones? Why introduce a new tax, coated with a beautiful name and noble intention, if you cannot account for 65% of the taxes that are already being paid?
In all ways, this resembles the "hut tax" that was levied on Kenyan's by colonizers during colonialism. Tax is being collected from Kenyans to be given to foreignors to build cheap houses for Kenyans. Why tax the Kenyans now when these houses will not be build until 2022? Why not let Kenyans build those cheap houses? After these houses are built will they be free to all Kenyans? Could it be that Kenyan's are being taken for a ride because new government will be in place come 2022? Will this be another corruption scandal where the foreignors (just like the Italians-Edormites) were given a down payment and then disappeared with the money? With the corruption in Kenya on the rise, all new projects should be halted until the corruption slows down and especially anything being done by foreigners. In all these schemes Kenyans are loosing and foreigners are gaining. Our present government is impoverishing it's own citizens.
For the remaining term of this government, the government should only complete the projects it started, stop corruption in the country and get out of the way for new faces and new thinking. The rulership of this world is being changed by the creator, let Kenyans start to be self-reliant and shake off any imperialist, colonialist,Neo-colonialism, multi-corporation ideas. Those of us who have joined hands with our colonizers (the Edormites) to keep oppressing us need to be left behind. May the real God guide and help Kenya and Africa (Hebrew Israelites) as a whole.