Thread by @jchelagat

THREAD: A pained taxpayers thoughts on the #HousingFundLevy

Wise ones, gather around.

Let's talk about this new "saving" GOK has demanded of us.

2) Why are 3 million of us paying for 500K houses?

We are forced to contribute to a fund for houses that, at best, only 25% of contributors will get. That is if "watu wakubwas" don't take several houses for themselves...remember NHC Scandal?

#HousingLevyFund #HousingLevy

3)Do you earn over Ksh. 100,000? Then forget about even getting a chance at living in one of those houses.

Why?You're not eligible.

#HousingFundLevy #HousingLevy

4) And since you have to contribute for at least 5 years to be eligible, you may not qualify if you get a pay rise in the next 5 years to fika the 100,000K cut off.

#HousingFundLevy #HousingLevy

5) So you'll get katwad for a house you won't live in because you earn over 100K.

But wait! They say that after 15 years/at retirement the money will be moved to your pension, and this should give us peace of mind because NSSF is so well managed?

#HousingFundLevy #HousingLevy

6) So you are being "forced to save" and trust that the same people behind the NSSF scandals will not eat our money again.

Why? Because nobody is eating money after the "stern warnings" that the oga at the top is giving...right?

#HousingFundLevy #HousingLevy

7) Don't complain because the "forced savings" will be safe, they say. GOK is cracking down on looters, they say.

How many billions have we recovered? How many thieves are behind bars?

Yeah sure, take more of our money for the #HousingLevy. We trust you.

#HousingFundLevy

8) Oh and even if you contribute, and you earn less than 100K when the 5-year period elapses, you have no assurance that you will get a house.

Why?

Simple mathematics...more people contributing than houses being built.

#HousingLevy #HousingFundLevy

9) So how will they allocate the houses?

CS @HKRotich spoke in favour of a lottery system...meaning your sallo will be slashed, sorry "saved" for you, and you will only have a chance at reaping the benefits.

Ebu start courting lady luck, my fren.
#HousingLevy #HousingFundLevy

10) If you interrogate the roll-out of the housing plan further, you will see that the construction will be focused on Nairobi and major towns.

Good luck, villagers!

#HousingLevy #HousingFundLevy

11) So to recap: you, a hardworking Kenyan in far flung places of this country will be forced to "save" for facilities that you do not even have a chance of using unless you relocate to the designated urban centres.

#HousingLevy #HousingFundLevy

12) Let's say you live in Nairobi. And you "save by force". And you earn under 100K after the 5 years. And you are amongst the lucky 25% who get selected, you still have to get a mortgage/raise money for the difference of the cost of the house.

#HousingLevy #HousingLevyFund

13) If you can't raise the difference btw your total "forced savings"and the cost of the house, well...

Because CRB will be used to assess your creditworthiness...wenye kudefault mobile loans, nje!

Even after jumping all the previous hurdles...

#HousingFundLevy #HousingLevy

14) Wise ones, a critical look at this housing plan raises more questions than answers, yet the government is keen to implement "forced savings" without giving substantial answers to questions about this forced #HousingLevy.

Why?

#HousingLevyFund

15) The number of hurdles you have to jump, to even get a chance to own a house, lock out many who have no choice but to contribute to the #HousingFundLevy.

Does this even make sense? Wise ones, help me understand this #HousingLevy rationale.

16) Nearly 90% of the rental houses in urban areas are privately owned. Since independence, the private sector has provided housing for a majority of renters. Wouldn't a more rational solution start there?

Enlighten me, Wise Ones.

#HousingFundLevy #HousingLevy

17) Wise Ones, what can be done to reduce the cost of construction?

What policies can be made to lower the cost of credit for low-cost housing projects?

Could we explore other options before taking more money from the overtaxed?

#HousingLevyFund #HousingFund

18) Such policy interventions would have wider-spread impact & they would not lock out people based on their earnings, locations, relationships with lady luck, and creditworthiness.

Wouldn't economic policy interventions work better than this #HousingLevyFund? #HousingFund

19) We need to also consider how to help Kenyans who have pinched pennies to buy a tiny ka-plot somewhere. What can we do to ensure that they have easy access to funds to construct their homes?

#HousingFundLevy #HousingLevy

20) How do we ease the journey to home ownership for those who would like to get mortgages? There is a reason that we have less than 25K mortgages in Kenya, against a 42+ million population...its expensive and difficult to secure.
#HousingFundLevy #HousingLevy

21) This #HousingFundLevy and 500K houses project is either very poorly thought out, or a government plan to make the few of us paying tax to give even more money to GOK.

Ama namna gani, Wise Ones? From where I sit, it's not making sense.

Ebu we reason togezza.