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I will repeal the housing levy once I become President – Kalonzo Musyoka

By Wangu Kanuri January 30th, 2024 2 min read

The Wiper Party leader Kalonzo Musyoka promised to repeal the housing levy in his first executive orders as the president of Kenya.

Musyoka, who has been against the levy from the get-go, arguing that it was oppressing citizens, wrote in a post on the X platform, “As President, my first Executive Order will be to repeal the Housing Levy, which is a Slash Fund.#mapemandiobest.”

Last Friday, the Court of Appeal decreed a halt on the payment of the tax by citizens until a final decision is made on the case. The panel of three judges determined that, in the interest of the public, the government’s request to persist in collecting the levy should not be granted.

“Public interest, in our view, tilts favour of in not granting the stay or the suspension sought. Public interest tilts in favour of awaiting the determination of the issues raised in the intended appeals,” said Justices Lydia Achode, John Mativo, and Mwaniki Gachoka.

The ruling brought significant reprieve to over 3.2 million formally employed Kenyans, who had been contributing every month to the fund.

Also read: MP Robert Mbui: Kalonzo will oust Ruto in 2027

Excited by the ruling, Mr Musyoka wrote, “The Court of Appeal judgment ruling that the Housing Levy is unconstitutional strengthens my faith in the rule of law. This slash fund has imposed a burden on already overburdened Kenyans. I expect the illegal deduction to be refunded immediately.”

In July 2023, the contentious Levy was introduced by the government, mandating that both employees and employers allocate 1.5 percent of their gross monthly earnings to a fund earmarked for affordable housing initiatives.

Earlier this year, Mr Musyoka expressed intentions to run for the presidency in the 2027 General Election. He conveyed hope that his candidacy would receive support from his fellow leaders within the Azimio la Umoja One Kenya coalition party for the pursuit of the top position at the State House.

In an interview with NTV, Mr Musyoka said, “If I was ready in 2002, and 2013 why do you think I will not be ready in 2027? The right time has come for this country to recognize a leader they have always rejected. I have played the team…I have selflessly supported others. If the country is ready for it, I will go for it. Giving up my presidential ambitions will mean I go home. We are at the tail-end of a process that should deliver this country. Azimio will give (President William) Ruto a strong candidate this time around.”