NAIROBI, Kenya, May 24 – Housing and Urban Development Principal Secretary Charles Hinga has called on United Nations Habitat stakeholders to develop a detailed strategy for financing urban housing, which has been a problem throughout in Africa.
Hinga said it is crucial for money to be set aside to fund and implement the urban agenda in African countries.
“Yes, we have the resolutions to implement urban housing, but where is the money for doing that, talk is cheap, we meet every year and have a lot of discussions, but I have a question, how are we going to fund the urban agenda?” he said.
“We need to come up with a bold resolution to be tabled to the UN Habitat assembly on how we need to fund the urbanization agenda. We are not asking for 10%of the budget we are only asking for 2%-5%of your countries budget as a resolution towards the urban housing funding we have all been wanting to deal with.”
Hinga was speaking while briefing the Diplomatic Missions and International Organizations accredited to Kenya on the preparatory process of the upcoming Second Session of the UN-Habitat Assembly in Nairobi on Wednesday.
According to the PS, most urban people currently reside in slums and informal settlements due to the rapid urbanization of Africa and other emerging nations, which has occurred without a corresponding increase in infrastructure or the provision of social services, along with insufficient housing.
He stated that because it would have an impact on future generations, the urbanization agenda must be settled once and for all.
Hinga continued by pointing out the paradox that while urban regions produce most of the the world’s wealth, there are still impoverished urban settlements and homes.
“Let this meeting be on how we fund the urban agenda lest we may have missed the point, and if we don’t fund this agenda what kind of country are we going to have? “he added.
“We need to up our voices on how to fund the urbanization agenda. Isn’t it ironical that the most of the country’s wealth is generated in urban areas but we have the urban poor We aren’t bankrupting our economy when we ask for funds of this topical issue.”
The call for urban housing fund from the PS comes amid a heated debate on the Finance Bill, 2023 which, among other things, proposes a housing levy whereby employees will have three per cent of their salaries sent to the housing scheme.
President William Ruto defended the bill by saying that his administration had identified key areas of the tax code where reductions or eliminations of taxes would lessen the burden on common people.
“I am urging MPs to approve the proposals in the Finance Bill because we have put effort into it. I have identified 20 areas to reduce taxes because I am aware of the challenging economic circumstances that Kenyans are currently experiencing,” said Ruto.
The bill has faced criticism from Azimio la Umoja One-Kenya leader Raila Odinga who has threatened to mobilise Kenyans in protest the proposals.
According to Odinga, if the Finance Bill 2023 is pushed through Parliament, Azimio will organize individuals across the nation to defend themselves.
“We will have no option but to mobilise all the social sectors and take all necessary political actions to stop this blow and burden,” he said.
The leader of Azimio stated that the Finance Bill, 2023 unfairly targets a middle class that is already enduring great hardships and has the least money to pay additional taxes.
“The most tangible results of this Bill will be the incorporation of most Kenyans into the ranks of the poor,” he stated.
He stated that the government should first address the underlying issues with the economy rather than raising taxes on Kenyans.
