The Lower Eastern Times Opening The Third Eye
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Wiper leader Kalonzo Musyoka has promised that, if he wins the presidency in 2027, he will immediately issue an executive order to eliminate the housing levy, which he argues has unfairly burdened salaried Kenyans.
At present, salaried workers are subjected to substantial tax deductions, including a 1.5% housing levy and a 2.75% health insurance contribution. Additionally, there will be an increase in National Social Security Fund (NSSF) contributions by the end of February.
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Kalonzo claimed that the housing levy is impoverishing over 3 million formal sector workers and causing widespread hardship. He argued that the tax is unjustly imposed.
“When we take office, the first executive order I will sign will be to abolish the housing levy,” Kalonzo said.
The former Vice President also expressed concerns about the lack of transparency in the allocation of construction tenders for affordable housing projects.
He stressed the importance of reducing the tax burden on employed Kenyans so they can enjoy their hard-earned salaries.
“We will restore the dignity of the payslip. Many workers are struggling with large mortgages and loans, yet they continue to pay the housing levy,” he added.
The issue of deductions from payslips is expected to be a central topic in the 2027 elections, with opposition leaders rallying formal sector workers against these levies.
On Monday, former Deputy President Rigathi Gachagua also pledged to eliminate these deductions if his camp wins the upcoming election.
“Once our government is in power, the housing levy will be abolished to restore the dignity of the payslip,” Gachagua stated.
He also criticized Central Organization of Trade Unions (COTU) Secretary-General Francis Atwoli for staying silent instead of standing up for workers against excessive taxation.
“Kenyans are struggling more than ever, yet even major workers’ unions have joined the government’s ‘praise and worship’ team. People are suffocating under NSSF deductions, yet all they do is sing praises,” Gachagua said.
However, Atwoli dismissed the notion that salaried workers would have a decisive impact on the 2027 election.
“The idea that formal sector employees can determine the election outcome depends on which workers you’re talking about. Politics in Kenya isn’t issue-based—ethnicity plays a major role,” Atwoli commented.
