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1.5% of teachers’ gross compensation will be withheld starting in July.

1.5% of teachers’ gross compensation will be withheld starting in July.

From July 1st, 2023, teachers, government employees, and other workers will have 1.5% of their gross pay withheld.

President William Ruto had initially suggested a required 3 percent housing levy contribution, which would be matched at the same amount by employers, with a combined contribution ceiling of Sh5,000.

With the new housing levy, however, employees will contribute 1.5% of their gross monthly income while employers will make no payment.

This means that while the Teachers Service Commission (TSC) will not pay anything, teachers will donate 1.5% of their income.

On Wednesday, members of parliament (MPs) decided to keep the 1.5% housing levy.

On Wednesday night, 256 MPs in total participated in the voting.
Out of the 256 MPs, 184 voted in favor of the 1.5% for Housing Fund amendment, while 72 MPs abstained.

The proposed housing charge was the subject of a contentious discussion before the vote, during which Minority Leader Opiyo Wandayi asserted that there were far more pressing issues facing the public than housing.

“Housing Levy will be an impending controversy. We are essentially throwing good money after bad money without the foundation, infrastructure, and method to handle it, the speaker claimed.

His claim was refuted by majority leader Kimani Ichung’wah, who said that the nation should treat slum dwellers the same way it does hunger.

“We need to address the scandalous activities of the millions of Kenyans living in slums as well as the issue of Kenyans going without food. We are simultaneously concerned about food and shelter, Ichung’wah remarked.

Both Kenyan government and citizens have had differing opinions about the Housing Fund plan.

From July 1, teachers will see a 1.5% reduction in their gross pay.

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