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Uproar over Kenya's 1.5% housing levy
Beginning next month, Kenyan employees will pay 1.5 per cent of their salary to fund the government’s project to build 500,000 affordable homes by 2022. The housing fund levy which is part of President Uhuru Kenyatta’s Big 4 agenda was largely met with backlash from the public. Johnson Denge, Senior Manager & Regional Markets at Cytonn Investments joins CNBC Africa to discuss this.
Thu, 18 Apr 2019 14:40:30 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Lack of transparency and accountability in the utilization of housing funds
- Absence of consultation with key stakeholders raises concerns over the legitimacy of the levy
- Importance of a comprehensive housing fund in addressing Kenya's affordable housing crisis
Kenya's latest government initiative to fund the construction of 500,000 affordable homes by 2022 has stirred controversy and public backlash. The housing fund levy, which mandates a 1.5 per cent deduction from employees' salaries starting next month, is a crucial component of President Uhuru Kenyatta's Big 4 agenda. However, Johnson Denge, Senior Manager & Regional Markets at Cytonn Investments, highlighted concerns regarding the lack of transparency and accountability in the implementation of the levy.
Denge expressed apprehensions over the absence of a clear framework detailing how the funds would be utilized, who would oversee the projects, the criteria for allocating the homes, and the qualification process for potential beneficiaries. In a country plagued by rampant corruption, Kenyan citizens are understandably wary of potential misappropriation of the funds.
Moreover, Denge criticized the government for failing to engage key stakeholders such as the Kenya Federation of Employers and consumer federations in the decision-making process. The lack of consultation with these groups has fueled doubts about the legitimacy and effectiveness of the housing levy.
Despite the skepticism surrounding the implementation of the levy, Denge acknowledged the importance of a comprehensive housing fund in addressing the nation's affordable housing crisis. Access to decent and affordable housing is a fundamental right that can significantly improve the quality of life for many Kenyan citizens.
The housing fund levy represents a bold step towards fulfilling this basic need, but the government must prioritize transparency, accountability, and stakeholder engagement to ensure the successful execution of the initiative.
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