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The Kenyan government has criticized Central Organization of Trade Unions (COTU) Secretary-General Francis Atwoli for his support of the controversial housing levy, which has been declared unconstitutional by the High Court. Atwoli has defended the 3% housing levy, stating, “It must be noted that the housing levy is NOT A TAX and that this is a great initiative to build low-cost houses for Kenyan workers” www.multilinks.biz
This stance has drawn sharp criticism from various quarters, including opposition leaders and other labor unions. Former Deputy President Rigathi Gachagua accused Atwoli of failing to defend workers from excessive taxation, stating, “Kenyans are struggling more than ever, yet even major workers’ unions have joined the government’s ‘praise and worship’ team”. www.multilinks.biz
The housing levy, introduced under the Finance Act 2023, mandates a 1.5% deduction from employees’ gross salaries, matched by employers, to fund affordable housing projects. However, the High Court ruled the levy unconstitutional, citing discrimination against formal sector workers and lack of a comprehensive legal framework. www.multilinks.biz
Despite the court’s ruling, President William Ruto has vowed to continue with the housing program, emphasizing its potential to create jobs and provide affordable housing. He stated, “We will also appeal the case so that we continue with the programme and create jobs for millions of Kenyan youth” . www.multilinks.biz
The controversy surrounding the housing levy highlights the tension between the government’s development agenda and the legal and financial concerns of workers and other stakeholders.
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