22 May 2025, Thu

Kalonzo Vows to Scrap Housing Levy in First Act as President!

Wiper Party leader Kalonzo Musyoka has vowed to revoke the housing levy through an executive order if he wins the presidency in 2027, arguing that the tax is unfairly burdening salaried Kenyans.

At present, formal sector employees are subjected to multiple deductions, including a 1.5 percent housing levy, a 2.75 percent health insurance contribution, and an expected increase in National Social Security Fund (NSSF) contributions by February.

Kalonzo criticized the housing levy, stating that it is pushing over 3 million formally employed Kenyans into financial hardship. He questioned its fairness and transparency, particularly in the allocation of funds for affordable housing projects.

“The first executive order I will sign as president will be to abolish the housing levy,” he declared, emphasizing the need to ease financial pressure on workers and allow them to enjoy their earnings.

He further stated that excessive deductions are eroding the value of payslips, making life increasingly difficult for employees juggling mortgages and loans.

The debate over salary deductions is becoming a major issue ahead of the 2027 elections, with opposition figures rallying against the levies.

On Monday, former Deputy President Rigathi Gachagua also promised to scrap the deductions if his coalition assumes power, echoing Kalonzo’s sentiments.

Gachagua criticized Central Organization of Trade Unions (COTU) Secretary-General Francis Atwoli, accusing him of failing to defend workers from excessive taxation.

“Workers are struggling more than ever, yet unions that should fight for them have joined the government’s praise and worship choir,” he remarked.

Atwoli, however, downplayed claims that salaried employees will play a decisive role in the 2027 elections, arguing that Kenyan politics is largely influenced by ethnicity rather than policy issues.

By Wamuzi News Ke

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