As President William Ruto’s regime pushes on establishing the Housing Fund as his legacy project, National Assembly took into account various stakeholders’ perspectives ahead of the budget reading on Thursday, June 15.
President Ruto has faced harsh criticism for crafting proposals that are unpopular among the Citizens in the East African Country.
In response to the uproar, the National Assembly Finance Committee proposed enacting a legal framework outlining how the government would collect the 3% salary deductions before implementing the Housing Fund.
Prior to MPs voting on the Finance Bill 2023, which will dictate how the budget will be financed, a clear guideline on how Ruto’s administration would use the funds will also be outlined.
Housing Principal Secretary Charles Hinga stated that the Ruto administration had proposed two changes to the fund, including not withdrawing employer contributions and taxing withdrawals.
Previously, it was proposed that the employer’s contribution be kept in the fund for 14 years.
The government had stated that those who transferred their contributions to the retirement scheme would be exempt from taxation.
Other noteworthy proposals under consideration include reducing the tax deduction from 3% to 2%.
