Housing and Urban Development PS Charles Hinga has called on Kenyans to take advantage of the government's affordable housing plan to own homes.
Hinga, who spoke in an interview on Spice FM on Thursday, May 18, expressed concern that most residents of Nairobi (a staggering 92 per cent) live in rented houses noting that this new initiative is meant to change this.
"The county of Nairobi has over four million residents most of whom live in rented houses," the PS said.
Hinga also noted that most urban dwellers, or 65 per cent, live in slums. The country has 1,141 informal settlements.
"There is a projection that by 2030, Kenyans should enjoy a better quality of life. However, a critical question arises: How can we achieve a high quality of life when over 65 per cent of our people live in informal settlements?" he said.
He described the current situation as a consequence of a broken housing system that has left many Kenyans struggling to meet basic needs.
The PS also noted that a significant number of Kenya (75 per cent) in formal employment earn less than Sh50,000. Another 97 per cent earn less than Sh150,000. "The earnings are inadequate to afford decent housing without assistance."
According to the Principal Secretary, the exorbitant cost of land is a major contributing factor to the housing crisis, with only two per cent of Kenyans in Nairobi being able to afford their own homes.
"Nairobi's land costs are the highest on the continent. In comparison to other markets where land costs account for 10-15 per cent of overall development costs, land in Nairobi takes up 30 to 50 per cent," he said.
Hinga's statement comes amid a heated debate on the Finance Bill, 2023 which, among other things, proposes a housing levy whereby employees will have three per cent of their salaries sent to the housing scheme.
President William Ruto has defended the Bill, stating that his government has identified crucial areas within the tax system where it [Bill] aims to reduce or eliminate taxes, thereby alleviating the burden on ordinary citizens.
"I am urging MPs to approve the proposals in the Finance Bill because we have put effort into it. I have identified 20 areas to reduce taxes because I am aware of the challenging economic circumstances that Kenyans are currently experiencing," said Ruto.
In a past interview this week, Nandi Senator Samson Cherargei also stated that enacting the Bill into law would provide the government with the necessary resources to sustain its operations.
"The country is facing an economic crisis. We need the taxes so that we can provide services to Kenyans. If we do not pass the bill as it is, we will not be able to accomplish anything in the next four years," he said.
The bill has faced criticism from Azimio la Umoja One-Kenya leader Raila Odinga who has threatened to mobilise Kenyans in protest against the proposals.
Odinga said Azimio will mobilise citizens across the country to fight for themselves should the Finance Bill 2023 be forced upon them through Parliament.
"We will have no option but to mobilise all the social sectors and take all necessary political actions to stop this blow and burden. Punda imechoka," he said.
The Azimio leader said the Finance Bill, 2023 unfairly punishes a diminishing middle class that is already suffering severe blows and can least afford to pay more taxes.
"The most tangible results of this Bill will be the incorporation of most Kenyans into the ranks of the poor," he stated.
Raila said the Opposition is demanding a major overhaul of the Bill in the interest of suffering Kenyans.
He added that instead of imposing more taxes on Kenyans, the government must first address the economy's structural shortcomings.
