Workers' union backs housing levy fund

A workers' union has thrown its weight behind the controversial Housing Levy Fund, noting it will address the plight of its members.

The Kenya Export, Floriculture, Horticulture and Allied Workers Union (KEFHAU) is seeking to be enjoined, as an interested party, in a petition filed by Busia Senator Okiya Omtatah challenging the Finance Bill, 2023.

The Bill that proposes a three per cent housing levy has been condemned by different quarters, including the opposition coalition Azimio la Umoja which has been leading the charge against it.

The union, under a certificate of urgency, wants to be enjoined as the second interested party, after Kenya Revenue Authority.

In an affidavit sworn, the union's secretary-general David Omulama says the Constitution provides that every person has the right to decent housing.

Having read the Finance Bill, Omulama argues that the housing levy is part of the State's obligation to provide decent housing through the new levy.

"Having carefully read the amendments which propose a three per cent contribution from the employers and employees, this does not constitute taxation as alleged by the petitioners," he says.

Omulama further notes that the contribution to the National Housing Fund was a direct monetary benefit to union members as it would be accessed after seven years.

"The applicant represents low-wage earners who are not able to save sustainably and buy their own homes and this fund by the State is a good programme," reads the affidavit.

He further notes that the lack of enough, good, quality and affordable housing in urban areas had contributed to high rents which many workers could not afford.

"The petition is based on misinformation, political rhetoric and speculation without any suggestion of how the acute shortage of housing in the country can be addressed," he says.

Justice Mugure Thande certified the matter as urgent and directed the application be served on the petitioner and the response to be filed by June 16, 2023.

The matter will be mentioned on June 19 for directions.

mgitonga@standardmedia.co.ke