President William Ruto’s Kenya Kwanza government is considering restructuring the Housing Levy to exempt low-income earners.
This is in line with the World Bank Public Finance Review 2025, which implored the government to reform the scheme to favor the financially deprived.
Speaking to the Senate on Wednesday, June 5, Treasury Cabinet Secretary (CS) John Mbadi said more pronouncements will be made in the coming days about the restructuring of the levy, which will also take into consideration the complaints raised by Kenyans contributing to the scheme.
"There is a discussion around restructuring the housing levy. Although it has serious benefits, the individual employees whose pay is cut have complaints that you cannot ignore. So, a lot of restructuring is going on, and more pronouncements will come in due course," said Mbadi.President Ruto introduced the 1.5% Housing Levy monthly contribution to help fund his agenda on building 200,000 housing units per year.
