Senator Khalwale:Housing scheme is not tax it is a saving

By Robert Mutasi

Kakamega Senator Boni Khalwale has said the housing scheme by the Kenya Kwanza government is not a tax instead it is a saving.

He has said the opposition is misleading people about affordable housing projects. 

Senator Khalwale while on Citizen TV Morning Interview, emphasized that the misleading from the opposition side to the public has made housing look like a tax. 

The senator encouraged people to save their money. According to Khalwale, people must know that saving is part of the financial management of income. 

He noted that Kenyans lack knowledge of financial management such as saving and thus end up struggling especially after they retire.

"Why is there so much financial illiteracy in this country?"Khalwale asked. 

"The person who is earning over 500,000 shillings per month the maximum he will save is actually 2500 shillings, "he said.

The senator stated that the money that supposed to pay for rent will help an employee to offset the house which would clear in a lifetime.

However,Khalwale has criticised the government for making the scheme compulsory for employers and instead urged President William Ruto to make changes to that.

For the scheme to be suitable for all people, Khalwale has urged the government to engage public participation for better understanding.

He mentioned that it would have been good for the government to consult with stakeholders before releasing the affordable housing project to the public.

The Azimio la Umoja was condemned by the Kenya Kwanza for accusing them of the project. 

The treasury proposed changes to the Employment Act that allow deductions of three per cent from employees. 

The basic pay helps fund President William Ruto's plan to build affordable housing. 

The proposal of the Finance Bill 2023 has been moved in the National Assembly for approval.