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Dock workers union support three per cent housing levy

However, Dock Workers Union general secretary Simon Sang said there should be friendly conditions.

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by BRIAN OTIENO

News03 June 2023 - 14:09
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In Summary


  • He said the Ruto housing levy would get rid of 1,110 slums across the country.
  • He also said the government must demonstrate transparency and accountability for Kenyan workers to be convinced of the housing levy.
DWU general secretary Simon Sang [L] at the union offices on Friday.

Dock Workers Union general secretary Simon Sang has suggested that the state should give civil servants a six per cent pay rise before deducting the three per cent housing levy.

Sang said at the moment, the majority of the civil servants’ pay slips have huge dents that make them tilt towards the negative side of the law because of loans and other deductions.

“Ninety per cent of workers are already below the one-third threshold,” Sang said.

The law requires that all deductions from a worker’s salary should not leave the worker with a net salary of below one-third of the total pay.

Speaking at the union offices, Sang said although he supports mandatory housing savings, there should be friendly conditions.

He said the Ruto housing levy would get rid of 1,110 slums across the country.

“If handled transparently and accountably, this levy will rid Kenya of slums by 2030,” he said.

He also said the government must demonstrate transparency and accountability for Kenyan workers to be convinced of the housing levy.

“Unfortunately, this noble issue has been reduced to an Azimio vs Kenya Kwanza war. It should be a workers’ issue,” Sang said.

The model has been borrowed from Singapore, which has one of the best housing projects in the world.

Singapore was once at the same economic level as Kenya.

“Due to politics, those shouting loudest against this levy are those who do not have pay slips,” Sang said.

As a pilot, he suggested, the Ruto administration should start by improving two slums in the country including Kibra and in Kisauni, Mombasa.

“Let people practically see what the government means,” the DWU general secretary said.

He said he will lobby for this with the union’s National Executive Board before talking to the dock workers.

The government should also, as an incentive, adjust the refund to seven years of savings from both the employer and the employee.

At the moment, according to the proposal, one contributor can get their refund after seven years while the other can only get it after 14 years.

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