M
mdadisi
Guest
right thank you Rashid and Trevor there
and of course there are many things that
have been Incorporated in close 76 of
the finance bill 2023 one of the things
is the benefits that you can reap once
you start contributing is that you may
purchase a home that is if you qualify
for affordable housing that is yet to be
defined it is understood that it will be
explained later on in regulations by the
France or the national treasury cabinet
secretary and the housing cabinet
secretary but you might draw your
contributions upon attaining the age of
retirement or after seven years
whichever is earlier so at this point
there's been a bit of controversy
because they're saying that whatever you
take out will be subjected to taxation
that is what is on the finance bill of
2023 that there will be a tax I want us
to take a look at a sample uh payslip
currently if a person is earning 50 000
Shillings that is in terms of the gross
pay these are the sort of deductions
that are coming to their payslip and at
the end of the day you end up with a net
pay of 40
841 Shillings of course that is is so
far there's no housing Levy so once it
it's introduced it is at three percent
paid by the employee there is three
percent to fifty thousand Shillings it's
1 500 Shillings so that will be deducted
the calculation this is based on the
assumption that the deduction of the
housing Levy will come before taxation
so before we arrive at the taxable
income then that will have been deducted
of course the finance bill does not tell
the clarity on that but this is
something that you can get clarification
about but after that then you you end up
with 39 611 so the net pay will have
reduced by about 1 200 Shillings but
even as we get into this conversation I
want to start with you Kwame because
we're seeing this conversation in the
finance bill and of course the finance
bill is what defines how the government
is planning to collect Revenue to
finance their budget we've just seen
some of the estimates they are talking
about 4.5 trillion Shillings in terms of
overall budget but the budget for the
national government or the country is
3.67 trillion Shillings so if you have
the housing Levy in the finance bill is
that proper that you have it finance
bill yet it is not something that is in
the budget no but please let me let me
just start let me just start with this
Kenyans anybody who has a chance to
listen to me
I'm not an elected Member of Parliament
I'm not seeking election and I don't
work for government let me tell you this
is a bad idea I'm not going to say this
is a good idea implemented well I have
to be circumspect and I have to be clear
it's a bad idea why members of
parliament have come here and have told
us that this would be a low cost housing
for people who have there's already a
high cost housing subsidy in Kenya it's
given to members of parliament and
people work in the public sector they
can take mortgages of up to 9 million or
thereabouts and it is funded by you
through your taxes
now if Government wants to build houses
for people who live in slums or who are
poorer people that's not a bad thing
article 43 of the Constitution just like
phrases in the Bible are misused a lot
in Kenya today the Constitution says
that people have a right to housing and
other rights he does not say
that government has to force us to pay
for it
s housing problem is not a problem there
are 14 million houses in Kenya of
different qualities from people who have
golf courses next to their houses to the
the ones that we've seen on TV which
would make You Weep if your relatives
lived in them
but the problem is not a housing problem
right here in Nairobi and in this city
where we are there are houses that are
actually unoccupied the problem is that
people don't have enough income to be
able to pay for it
so we are defining this problem wrong
because the PSS and people we are
listening to in that other Studio
have made commitments to people who are
supposed to construct houses and give
them free land to do that
so we are solving the wrong problem but
let me come to what you've told us
it is also true that if Government
wanted us to pay for housing and he's
asking he's telling me for instance for
instance I'm a little privileged thanks
to my employers so I would not qualify
for this housing I'm not a rich man but
I'm thanks to my employers I wouldn't
qualify what that means essentially is
this
my employer is being taxed but we're
being told it's not a tax by employer is
being taxed and they'll pay the maximum
amount of 2500 which will be saved from
here in seven years or so I'll have to
take out that money or maybe not
the interest rates here above what
government is borrowing up government is
borrowing at 11 or 12 percent today
so obviously what this is doing is taxes
are being used to redistribute
redistribution is not a bad thing but
let's not redistribute money among
Kenyans through lies
all those complicated things you're
hearing here are complete misstatements
and if you put all this money together
and the flows over time this is a fund
that would collapse in seven years
you say that the government officers
have made commitments to others and
that's what they have to push this
through to finance those no substantiate
that I'm saying the only people who
benefit and the peers say this clearly
here that they already have people
they're calling investors but are not
putting their own money those investors
are being asked to construct with the
certainty that this fund will cover the
risk by paying them
if this housing idea was a good idea the
same private investors we are talking
about would not need government they'd
simply tell government guys let us
construct the houses and then you guys
anybody would off take we have an off
take Plan meaning certainty is being
provided to whoever does the
construction
so where is this man why is this man
important so that a fund is created
which they are calling a fund that helps
to cover that risk so that whoever
constructs is assured that government
will off take and that off take so
that's where they might so this is not
even a housing scheme okay it's a
financial structure that's that's being
called a fund guys
we need to be truthful with each other
as we call the Bible and cite the
Constitution I am not satisfied that the
people who've Spoken Here
either are good Christians because they
started the Bible and that they
understand the Constitution well they
have to stop telling us this nonsense
and of course there are many things that
have been Incorporated in close 76 of
the finance bill 2023 one of the things
is the benefits that you can reap once
you start contributing is that you may
purchase a home that is if you qualify
for affordable housing that is yet to be
defined it is understood that it will be
explained later on in regulations by the
France or the national treasury cabinet
secretary and the housing cabinet
secretary but you might draw your
contributions upon attaining the age of
retirement or after seven years
whichever is earlier so at this point
there's been a bit of controversy
because they're saying that whatever you
take out will be subjected to taxation
that is what is on the finance bill of
2023 that there will be a tax I want us
to take a look at a sample uh payslip
currently if a person is earning 50 000
Shillings that is in terms of the gross
pay these are the sort of deductions
that are coming to their payslip and at
the end of the day you end up with a net
pay of 40
841 Shillings of course that is is so
far there's no housing Levy so once it
it's introduced it is at three percent
paid by the employee there is three
percent to fifty thousand Shillings it's
1 500 Shillings so that will be deducted
the calculation this is based on the
assumption that the deduction of the
housing Levy will come before taxation
so before we arrive at the taxable
income then that will have been deducted
of course the finance bill does not tell
the clarity on that but this is
something that you can get clarification
about but after that then you you end up
with 39 611 so the net pay will have
reduced by about 1 200 Shillings but
even as we get into this conversation I
want to start with you Kwame because
we're seeing this conversation in the
finance bill and of course the finance
bill is what defines how the government
is planning to collect Revenue to
finance their budget we've just seen
some of the estimates they are talking
about 4.5 trillion Shillings in terms of
overall budget but the budget for the
national government or the country is
3.67 trillion Shillings so if you have
the housing Levy in the finance bill is
that proper that you have it finance
bill yet it is not something that is in
the budget no but please let me let me
just start let me just start with this
Kenyans anybody who has a chance to
listen to me
I'm not an elected Member of Parliament
I'm not seeking election and I don't
work for government let me tell you this
is a bad idea I'm not going to say this
is a good idea implemented well I have
to be circumspect and I have to be clear
it's a bad idea why members of
parliament have come here and have told
us that this would be a low cost housing
for people who have there's already a
high cost housing subsidy in Kenya it's
given to members of parliament and
people work in the public sector they
can take mortgages of up to 9 million or
thereabouts and it is funded by you
through your taxes
now if Government wants to build houses
for people who live in slums or who are
poorer people that's not a bad thing
article 43 of the Constitution just like
phrases in the Bible are misused a lot
in Kenya today the Constitution says
that people have a right to housing and
other rights he does not say
that government has to force us to pay
for it
s housing problem is not a problem there
are 14 million houses in Kenya of
different qualities from people who have
golf courses next to their houses to the
the ones that we've seen on TV which
would make You Weep if your relatives
lived in them
but the problem is not a housing problem
right here in Nairobi and in this city
where we are there are houses that are
actually unoccupied the problem is that
people don't have enough income to be
able to pay for it
so we are defining this problem wrong
because the PSS and people we are
listening to in that other Studio
have made commitments to people who are
supposed to construct houses and give
them free land to do that
so we are solving the wrong problem but
let me come to what you've told us
it is also true that if Government
wanted us to pay for housing and he's
asking he's telling me for instance for
instance I'm a little privileged thanks
to my employers so I would not qualify
for this housing I'm not a rich man but
I'm thanks to my employers I wouldn't
qualify what that means essentially is
this
my employer is being taxed but we're
being told it's not a tax by employer is
being taxed and they'll pay the maximum
amount of 2500 which will be saved from
here in seven years or so I'll have to
take out that money or maybe not
the interest rates here above what
government is borrowing up government is
borrowing at 11 or 12 percent today
so obviously what this is doing is taxes
are being used to redistribute
redistribution is not a bad thing but
let's not redistribute money among
Kenyans through lies
all those complicated things you're
hearing here are complete misstatements
and if you put all this money together
and the flows over time this is a fund
that would collapse in seven years
you say that the government officers
have made commitments to others and
that's what they have to push this
through to finance those no substantiate
that I'm saying the only people who
benefit and the peers say this clearly
here that they already have people
they're calling investors but are not
putting their own money those investors
are being asked to construct with the
certainty that this fund will cover the
risk by paying them
if this housing idea was a good idea the
same private investors we are talking
about would not need government they'd
simply tell government guys let us
construct the houses and then you guys
anybody would off take we have an off
take Plan meaning certainty is being
provided to whoever does the
construction
so where is this man why is this man
important so that a fund is created
which they are calling a fund that helps
to cover that risk so that whoever
constructs is assured that government
will off take and that off take so
that's where they might so this is not
even a housing scheme okay it's a
financial structure that's that's being
called a fund guys
we need to be truthful with each other
as we call the Bible and cite the
Constitution I am not satisfied that the
people who've Spoken Here
either are good Christians because they
started the Bible and that they
understand the Constitution well they
have to stop telling us this nonsense