Billions of money that have been collected under the affordable housing tax have been invested in Treasury Bills (T-Bills). According to the Affordable Housing Board acting chief executive officer Sheila Waweru, some Sh. 46 billion collected from this tax have so far been invested in the short term T-Bills.
This amount includes reinvestments which are equivalent to 51.8 per cent of the Sh. 88.7 billion that has so far been collected since August 2023 when the controversial tax came into force.
“It is not prudent even as government to have money seated, lying idle in an account. The money is safe, fully invested in government securities and the accounts we are operating are CBK accounts, which have full sight of the government on every expenditure,” said Waweru.
“We can put the money in Treasury Bills as a manager of the affordable housing fund and it brings additional money, say Sh. 2 billion, and that enables us to put up more units which we will not do if the cash was staying in an account idly.”
This has been revealed hot on the heels of revelations that the Kenya Revenue Authority (KRA) is now planning to start blocking the bank accounts and pin numbers of workers in the informal jua kali sector over the government’s controversial housing tax.
“If you are not truthful about your business, your income and the people you have employed, then it also becomes difficult on our end and that is when enforcement comes in,” said Waweru.
KRA to block bank accounts, PINs of jua kali workers over housing tax
“Whatever mechanism [KRA] are using to collect the taxes is the same mechanism for the housing levy because that is the same income from which you are required to pay the tax. KRA has foot soldiers who walk around even in the estates where businesses are and they will come to your premises to see if you are making money, if you are registered under KRA and if you’re paying taxes and the levy.”
Although taxes amounting to billions of money have been collected under this fund, construction works on the ground have not kept up. The government under President William Ruto had claimed that it was targeting to build about 250,000 houses per year. However, currently, only about 0.4 per cent of these houses are being built per year.
