Ahead of the budget reading scheduled for Thursday, June 15, the National Assembly considered the perspectives of various stakeholders. This was in relation to President William Ruto's administration's efforts to establish the Housing Fund as his flagship initiative.
President Ruto has faced criticism for proposing ideas that have not garnered support from the people.
In light of the ongoing controversy, the National Assembly Finance Committee has proposed legislation that outlines the operational framework for the Housing Fund before initiating the collection of the proposed 3% wage deductions.
Furthermore, prior to the voting on the Finance Bill 2023, which will determine the financing of the budget, a clear directive regarding the utilization of the funds by President Ruto's administration will be provided.
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According to Housing Principal Secretary Charles Hinga, the Ruto administration has put forward two modifications to the Housing Fund. These changes involve retaining employer contributions within the fund and implementing taxation on withdrawals.
Previously, a proposal suggested keeping the employer's contribution in the fund for a period of 14 years.
The government had also indicated that individuals who transferred their contributions to a retirement scheme would be exempt from taxation.
Additionally, among the notable proposals being considered is a reduction of the tax deduction from 3% to 2%.
