Economy
Housing levy hits Sh12bn in the first three months
Wednesday November 01 2023
Controller of Budget, Margaret Nyakang’o. FILE PHOTO | BILLY OGADA | NMG
Employers and employees paid out Sh11.83 billion under the mandatory housing development levy in the first quarter of the financial year, says Treasury in a document.
The document covering July to September 2023 and tabled before the National Assembly’s Finance Committee shows the Treasury collected Sh7.9 billion in August and Sh3.93 billion in September.
The document, tabled by Controller of Budget (CoB) Margaret Nyakang’o shows the Treasury did not remit any exchequer releases to the Housing Fund in July.
Both employers and employees remit 1.5 percent of gross salary under the housing levy that is expected to be deployed in the development of affordable housing and associated social and physical infrastructure and affordable home financing.
The Treasury estimates that the contributions will increase by 40.8 percent to hit Sh89 billion in the 2026/27 financial year, up from Sh63.2 billion in the current fiscal cycle.
Estimates from the draft Budget Review and Outlook Paper show the contributions will stand at Sh70 billion in the 2024/25 fiscal year and Sh78 billion in 2025/26.
Dr Nyakang’o appeared before the committee chaired by Molo MP Kuria Kimani to defend the CoB budget which has been cut by Sh59 million through Supplementary Budget I.
“I came armed with this document from the National Treasury which is provided to the CoB every quarter showing the total exchequer issues,” Dr Nyakang’o said.
→ (email protected)
