Netizen reactions: How State House briefing on housing levy backfired online

By , K24 Digital
On Thu, 25 May, 2023 12:31 | 3 mins read
Housing levy deductions backdated to July 1
Housing and Urban Development Principal Secretary Charles Hinga (right) with State House spokesperson Hussein Mohamed (left) during a press briefing on housing levy. PHOTO/Twitter

A press briefing by State House spokesperson Hussein Mohamed and Housing and Urban Development Principal Secretary Charles Hinga on affordable housing has stirred reactions from Kenyans on social media.

During the press briefing, PS Hinga, asserted and explained that the levy will solve Kenya’s housing problem.

He went ahead to explain why it is a good idea for the provision for the contribution to be included in the law as captured in the Finance Bill, 2023.

“Some of you are asking why can’t we make this voluntary? But when it is driven by law, if I’m going to get a billion a month, it means I can go out there and call investors and tell them that as long as the law is there, I will be collecting money after three years,” he said.

He also revealed the origin of the housing levy idea mentioning countries like Singapore, Mexico, Brazil, Nigeria and China from which he says the government benchmarked.

Notably, in what looked like a challenging moment for him, Hinga revealed that there would be more expenses for homeowners who qualify to participate in the programme saying they will pay at least Ksh 2,500 for maintenance.

He further said that those who falter on payment along the 20 to 30-year repayment journey will be thrown out of their houses.

“The criteria for allocation is ‘first past the gate’, you must have raised a 10 per cent deposit for that unit and you must register at ‘Boma Yangu’,” PS Hinga said.

Adding;

“You will pay a service charge because that is your house. The conversation is owners versus renting, you need to take care of that house,” he said, indicating that estates would have to organise themselves to determine service charges that are to take care of maintenance costs."

A section of netizens immediately took to social media to air their opinions on the proposed new levy and to guage the success of the presser.

If the reactions are anything to go by, the explanation given from the event that was hosted on Wednesday, May 24, 2023, about the new levy - that seeks 3 per cent of workers' monthly basic salary to fund the project - was not satisfactory.

Here are some of the reactions;

Read all the comments here.

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