Kenya: Civil Society Group Faults Proposed Housing Fund

Nairobi — A civil society organization comprising 25 players has faulted the proposed Housing Fund that will see employed Kenyans taxed at three percent.

Instead, the group wants the state to control expenditures.

It adds that the tax hike is punitive, coming at a time when the country's economy is slowly recovering from the effects of Covid-19 pandemic.

"We are aggrieved that we don't see the value of the money we are collecting. This must be looked into," said Abraham Rugo from the International Budget Partnership.

On the same breath, it opposed the excise duty on mobile money transfer services and a Sh25 per kilo excise duty on powdered juice.

They are also against the introduction of an excise duty on all imported and locally produced sugar purchased by the pharmaceutical industry.

It advises the state to empower and adequately finance institutions like the Ethics and Anti-Corruption Commission (EACC) and the Judiciary to fight against graft.

It also calls for the empowerment of the Office of Public Debt Management by making it an independent office.

It further petitioned the government to increase parliament's oversight of the budget implementation to reduce wasteful expenditure.

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