KAHC opposes 1.5 per cent housing levy

By Robert Mutasi

The Kenya Association of Hotel Keepers and Caterers(KAHC) has opposed the housing levy introduced in the Finance Bill 2023.

This will increase the cost of doing business in many parts of the country.

Speaking to the press, KAHC National Chairperson Christopher Musau has said the housing levy will see almost every basic commodities go up.

Musau stated that the increase in the cost of doing business will shurn away customers because the prices of food will shoot high.

"We rely on transportation of goods, people and services across so the cost of doing business will go up," said Musau.

The hotel owners anticipate the finance bill is going to affect them adversely in terms of market and profits.

"We are still waiting for the final act from parliament so that we determine how much it is going to affect us," said the chairperson.

In their submissions, KAHC stated that every time there is a budget the government works on a June to June calendar which contracts with their calendar where they work on a January to December calendar.

Musau noted that it will be difficult for them to adapt to the new proposal in the bill concerning increase in rates.

Apart from the housing levy, Musau mentioned the rise in fuel price as another major blow to their business as transportation of goods will increase.

The cost of fuel, he said, will affect the prices of foods to skyrocket in prices thus making it difficult for many to afford.

According to Musau, they are going to look at pushing the cost to the consumer once they evaluate.

He claims that the petroleum price going high will incur an increase in the cost of importing goods abroad.

The chairperson claimed the number of domestic and foreign tourists will reduce since the payment will not be favorable.

Out of the 256 MPs, 184 members were in favour of the 1.5 per cent for Housing Fund while 72 MPs voted against the amendment.