The Kenya Export, Floriculture, Horticulture and Allied Workers Union (KEFHAU) is in court to defend the three percent Housing Levy. The union is seeking to be enjoined in a petition where Busia Senator Okiya Omtatah is challenging the Finance Bill 2023
The union, under a certificate of urgency, wants to be enjoined as the second interested party after KRA in the matter that is questioning the validity of using tax proceeds to pay unaudited public debts. The Bill that proposes a three-percent housing levy has drawn outrage and condemnation from different quarters, including the opposition.
However, in an affidavit sworn by its secretary-general David Omulama, KEFHAU argues that the constitution provides that every Kenyan is entitled to the right to accessible and adequate housing. Omulama argued that the housing levy was part of the State's obligation to provide decent housing through the new levy.
"Having carefully read the amendments which propose a three percent contribution from the employers and employees, this does not constitute taxation as alleged by the petitioners," he said. Omulama, in the affidavit, further noted that the contribution to the National Housing Fund was a direct monetary benefit to their members which 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 program," reads the affidavit.
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