Charles Hinga: Housing fund is not a tax, it's savings
National
By
David Njaaga
| May 29, 2023
Housing Principal Secretary Charles Hinga has emphasised the importance of promoting a savings culture among Kenyans as a crucial step in addressing the country's severe housing situation.
Speaking on Spice FM on Monday, May 29, Hinga expressed concern about the more than seven million Kenyans living in informal settlements and the need for a proactive approach to resolving the issue.
"We can't ignore the problem and pretend it doesn't exist," he said.
Hinga called upon Kenyans to support the housing levy proposed in the Finance Bill 2023, stating that it would provide an opportunity for many to afford decent housing.
The bill is currently before the National Assembly, and if passed, it will require employees and employers to contribute 3 per cent of their income towards the national housing scheme.
"We need to engage in thoughtful discussions and assess the effectiveness of our proposed solutions. Are our strategies viable?" Hinga questioned.
In his previous address, Hinga emphasised the essential role of mandatory contributions in attracting potential investors for the ambitious housing project.
"This allows our nation to confidently approach the market and attract investors, encouraging them to bring their financial resources," he explained.
Hinga clarified that the decision to implement the housing levy was made to address the persistent housing problem, which has resulted in a growing number of informal settlements, currently totalling 1,400.