Ruto defends 1.5% housing levy after minimum wage increase

President William Ruto defended the 1.5 percent Affordable Housing Levy during a recent speech in Eldoret, criticizing those who oppose the government's housing program without providing alternatives. He noted that workers should consider the levy alongside the 10 percent increase in their salaries, arguing that the government had raised wages by that amount.

Ruto questioned the fairness of people criticizing the 1 percent deduction while ignoring those without formal employment. He also pointed out that the government should consider all Kenyans, including those who contribute to the economy through taxes without receiving formal salaries. The Affordable Housing Programme is linked to employment, as the president claimed that many young people rely on the projects for work.

He accused critics of being sponsored to oppose his administration's projects, including affordable housing, the Social Health Authority, and road construction. The president also mocked arguments against high-rise affordable housing, such as the idea that chickens cannot climb to upper floors, arguing that those who oppose the projects lack common sense.

The Affordable Housing Levy, introduced through the Finance Act of 2023, remains a contentious political issue, with a previous High Court ruling declaring the provision unconstitutional before Parliament enacted the Affordable Housing Act of 2024, which provided a statutory basis for the levy.