Machakos Town Member of Parliament, Caleb Mule, put forward six amendments to the Housing Fund Levy, aiming to restrict the government's discretion in utilizing funds collected from Kenyans.

In the National Assembly order paper, Mule urged his fellow MPs to ensure that the funds collected are exclusively allocated to the construction of affordable housing and related projects, effectively limiting President William Ruto's authority to allocate the funds as needed.

"The Affordable Housing Levy shall be solely utilized for the development of affordable housing and associated social and physical infrastructure, as well as providing affordable home financing to Kenyans," proposed Mule.

On the other hand, Kabuchai MP Majimbo Kalasinga suggested that contributions to the fund be voluntary, which would result in the Head of State collecting less than his Ksh83 billion target.

More on this story

MPs Propose Amendments to Housing Levy, Curbing President Ruto's Autho...

• President Ruto Enacts Affordable Housing Bill Into Law
• President Ruto Visits Kilgoris Farm, Bottle-Feeds Calf in Hands-On Livestock Care
• President William Ruto Announces 12% Interest for Every Hustler Fund Saver
• 3 Changes Proposed to Ruto Housing Fund as Pressure Mounts

Furthermore, Kalasinga proposed that deductions be set at 1.5 percent of the basic salary instead of the gross salary, as stated in the bill. He also recommended capping the joint contribution for employers and employees at Ksh3,000.

"An employee may choose to increase their contribution to the fund by informing their employer and the Cabinet Secretary responsible for housing matters, specifying the higher monthly percentage above the prescribed rate," the amendments stated.

"If an employee opts to make a higher contribution under subsection, the employer will not be obligated to make a corresponding contribution," the proposed changes further clarified.

In addition, the lawmaker insisted that contributors should receive their contributions with interest after a period of seven years.

"A contributor should be able to receive their contributions in cash with interest based on prevailing rates. However, cash payouts will be considered part of the contributor's taxable income for the year and will be subject to tax at the prevailing rates," he added.

Kilimini MP Didmus Barasa also introduced an amendment that would allow individuals who have contributed to the fund to enter into joint purchase agreements. This change would enable couples to participate jointly in affordable housing initiatives.

"An employee who has accumulated contributions may enter into a joint house purchase agreement with another fund contributor to finance the acquisition of a home under the affordable housing scheme," proposed Barasa.