Wahome: Housing levy contributions do not guarantee home ownership

Lands Cabinet Secretary Alice Wahome has come under fire after saying that monthly contributions to the Housing Levy do not guarantee home ownership. 

Wahome instead said that the deductions should be viewed as a tax.  

“The money you are contributing is not meant to give you a house; it is helping us build the houses. After that, it is up to you to pay for the house,” Wahome said on NTV, Wednesday. 

She explained that the government is not giving out free homes but facilitating a rent-to-own model.  

“We are not building and handing you a house. We are building and allowing you to maintain it through rent. It is like a tenant purchase arrangement, you rent to own,” she said.  

Under the Housing Levy, salaried Kenyans contribute 1.5 percent of their gross income, with employers required to match the amount.  

“The deduction is a levy or tax. I think it is easier to call it a tax, although it is a levy specifically for building houses to enable Kenyans to access affordable homes,” said Wahome.  

Her remarks have sparked sharp reactions, with many Kenyans questioning the fairness of the levy.  

“That is a scam. Imagine paying Sh3 million to help someone build a house, then buying the same house for Sh3m. Isn’t that double payment? And you still continue paying to build more houses that you may never own. It’s a pyramid scheme,” wrote Nahashon Kimemia.  

Another critic questioned, “You help fund the construction, but the house doesn’t belong to you when it’s complete. Is that not theft?”  

X user Sholla Ard added, “The beauty of this government is that they can never sustain a lie for long.”  

The Housing Levy was introduced to address Kenya’s housing shortage and the expansion of informal settlements.  

“This affordable housing program is not a Kenya Kwanza initiative; it is a government one. We found it ongoing, but its take-off was not well structured,” the Lands CS said.