Wiper leader Kalonzo Musyoka has vowed to abolish the controversial housing levy if he wins the presidency in 2027, pledging to sign an executive order on his first day in office to eliminate the tax. Speaking to the public, Kalonzo emphasized the negative impact of the levy, which he claims has significantly burdened salaried Kenyans.
The current tax structure in Kenya imposes heavy deductions on salaried employees, including a 1.5% deduction from their gross pay for the Housing Levy and an additional 2.75% for health insurance. On top of this, a planned increase in National Social Security Fund (NSSF) contributions is set to add more financial pressure on Kenyan workers by the end of February.
Kalonzo’s criticism of the housing levy comes at a time when over 3 million Kenyans in formal employment are grappling with the high cost of living, which he argues is exacerbated by these tax deductions. He condemned the levy as unfair, stressing that it was impoverishing many workers who are already struggling to pay off mortgages and loans. “When we take over, the first executive order I will sign is to scrap the housing levy,” Kalonzo said, promising a better deal for employed Kenyans.
Kalonzo’s remarks also touched on the issue of transparency in the allocation of construction tenders for affordable housing projects, a key area where he believes reforms are needed. Additionally, he emphasized the importance of easing the overall tax burden on workers so that they can better enjoy their hard-earned salaries. Kalonzo’s goal is to “restore the dignity of the payslip,” an issue that has become a major campaign topic ahead of the 2027 elections.
The debate over the housing levy has also been picked up by other political figures, including former Deputy President Rigathi Gachagua, who has similarly pledged to abolish the tax if his side wins the 2027 election. “Once our government is sworn in, the housing levy will be abolished to restore the dignity of the payslip,” Gachagua said, further adding that he would work to ease the burden on Kenyan workers.
However, Central Organization of Trade Unions (COTU) Secretary-General Francis Atwoli dismissed the growing narrative that formal sector employees could significantly influence the upcoming election. Atwoli suggested that Kenya’s politics is deeply influenced by ethnicity, rather than solely by issues like tax deductions.
With the issue of payslip deductions dominating the political discourse, the 2027 election is shaping up to be a battle of promises on how best to relieve the financial strain on Kenyan workers.
