The Kenya Export, Floriculture, Horticulture and Allied Workers Union (KEFHAU) is in court to defend the three percent Housing Levy.
The union is seeking to be enjoined in a petition where Busia Senator Okiya Omtatah is challenging the Finance Bill 2023
The union under a certificate of urgency wants to be enjoined as the second interested party after KRA in the matter that is questioning the validity of using tax proceeds to pay unaudited public debts.
The Bill that proposes a three-percent housing levy has drawn outrage and condemnation from different quarters including the opposition.
However in an affidavit sworn by its secretary-general David Omulama, KEFHAU argues that the constitution provides that every Kenyan is entitled to the right to accessible and adequate housing.
Omulama argued that the housing levy was part of the State's obligation to provide decent housing through the new levy.
“Having carefully read the amendments which propose three percent contribution from the employers and employees, this does not constitute to taxation as alleged by the petitioners,” he said.
Omulama in the affidavit further noted that the contribution to the National Housing Fund was a direct monetary benefit to their members which would be accessed after seven years.
“The applicant represents low wage earners who are not able to save sustainably and buy their own homes and this fund by the State is a good programme,” reads the affidavit.
He further noted that lack of enough, good, quality and affordable housing in urban areas had pushed up rents, mainly in urban centers making them unaffordable to many workers.
Due to this, he said, many workers end up staying in slums and low quality houses that lack water, electricity and sewer systems which would be addressed by the affordable housing project.
“The petition is based on misinformation, political rhetoric and speculation without any suggestion of how the acute shortage of housing in the country can be addressed,” he argues.
He said that if the housing scheme takes off, it would have a ripple effect through the creation of jobs and spur economic growth.
Justice Mugure Thande certified the matter as urgent and ordered that application be served immediately to the petitioner and the responses be filed on June 16.
The matter will be mentioned on June 19 for directions.