This archive report was first published on 21 May 2020.
On May 21, 2020, the government published regulations to revive the National Housing Development Fund, a scheme aimed at supporting citizens to acquire affordable housing.
The proposed regulations, tabled by Transport and Housing Cabinet Secretary James Macharia, require every citizen to pay a minimum of Sh200 a month to the fund.
While the provision of affordable and quality housing is a noble objective, the government's decision to make the contribution mandatory has been met with criticism.
Proponents of the scheme argue that it is part of President Kenyatta's 'Big Four Agenda' plan, which includes universal health coverage, food security, and manufacturing.
However, critics argue that the scheme amounts to double-taxation and will shrink incomes and raise the cost of employment.
Moreover, the government's history with infrastructure projects and contributory funds has raised concerns about the potential for corruption.
Many contributory funds, including the National Social Security Fund (NSSF) and the National Hospital Insurance Fund (NHIF), have been plagued by corrupt deals.
Given these concerns, Parliament should reject the regulations as currently proposed and instead consider a voluntary scheme that allows citizens to choose whether or not to participate.
