Osoro: How the Housing Levy will be managed, distributed
According to Osoro, the contribution will not be banked in the government's consolidated account but will rather be stored by a commercial banker and distributed by an administrator.
Speaking on Citizen TV's Daybreak Show on Monday, MP Osoro claimed that once the deductions have been collected they will be channelled to the Central Bank of Kenya (CBK) and then wired to the chosen custodian.
"The structure is laid out in the point that when the money comes from the deductions, immediately it hit CBK it leaves to a commercial bank which is going to be competitive," he claimed.
The Majority Whip further claimed that Britam has already been appointed as the fund's administrator and KCB bank is in custody of a chunk of the already contributed amount.
"When deducted, this amount it is not going to the consolidated account of the state. The amount of money is going to have an administrator. There is an administrator and as of now it is Britam, the insurance company," he said.
"There is already a competitive procedure of appointing a banker, as at now KCB is in hold of such amount of money quite independent from the consolidated account of the government."
MP Osoro went on to add that once the money is received by the banker, it goes through the administrator (Britam) and other boards before reaching the withdrawal level.
"From there the money is not going to be directly accessed by a direct source, there is a point of an administrator, a board and downwards," he noted.
"The structure is too long and cumbersome before you get to the point of withdrawals and such."
The legislator noted that they chose to include many checkpoints in the management chain to assure Kenyans of transparent and secure management of the monies.
"We want to make this money autonomous. You can access it at will after 7 years and the process is to yield confidence that the money is safe and also to the constructor."
The proposal wants employees to pay three per cent of their monthly salaries to support President William Ruto’s ambitious plan to provide affordable housing to Kenyans.
But it has been met with opposition from a section of Kenyans, with some calling for the levy to be made a voluntary contribution.
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