Governor Sonko against housing levy deductions

Nairobi Governor Mike Sonko has opposed implementation of a housing levy by the Government. Sonko, (pictured), said Kenyans were already "overburdened" and further taxation would only be "taking away the meagre salary they earn".

If implemented, the levy will see every employed Kenyan taxed 1.5 per cent of their monthly pay.

The contribution will be dedicated towards construction of 500,000 affordable houses, which will then be distributed to citizens on a "lottery" basis.

Nairobi County stands to gain the most, with 200,000 units expected to be set up in the capital.

"I am in no way fighting the President on this," Sonko said.

The flamboyant city boss further expressed intentions to have a sit down with the President to look into other ways on how the affordable housing can be delivered without over taxing the citizenry.

“A big percentage of Kenyans are poor and those that are employed earn minimum wage.

“I will be looking for his excellency the President when he comes back to the country next week and try to address this issue with a lot of humility. I plead with him to suspend and withdraw this housing levy,” observed the Governor.

He was speaking during the COTU prayer day at St. Stephens ACK Nairobi.

Central Organisation of Trade Union (COTU) Secretary General, Francis Atwoli however supported the 1.5 percent housing levy albeit with a condition.

Atwoli said that the affordable housing levy was a good one and they would support it on condition that the National Government granted workers a 15 percent general wage increment.

“The government can go ahead and implement the housing levy but they should first make sure that they give us the 15 percent wage increase so that workers are able to fund the housing project,” said the secretary general.

The Federation of Kenyan Employers and the Kenya National Union of Teachers (KNUT) are also some of the groups that have explicitly opposed the housing levy taxation.

Meanwhile, Governor Mike Sonko has waived a Sh224 million rent arrears owed to city hall by residents in Nairobi City County houses

Sonko arrived at the decision after receiving reports that tenants –mostly the elderly-were being evicted in an uncouth manner and moved to avert the same. He also pointed out that cartels were taking advantage of those with debts by evicting them and subletting their houses to other tenants.

“I have issued a waiver of rent arrears owed to the Nairobi City County Government by our tenants. However, I am appealing to tenants occupying Nairobi County Government houses to pay their monthly house rents on time without defaulting,” he said.

Tenants of the county houses in Kariobangi were earlier this month evicted by rowdy youth who even broke into their houses and took away their belongings.

Last month, City Hall Housing Director Marion Rono told a budget and appropriations committee that tenants residing in the over 17,000 county houses in Nairobi owe City Hall Sh224 million in rent arrears.