Civil servants working in various government departments will dig deeper into their pockets after a rent increment on all government residential houses.
In a letter addressed to Principal Secretary Chris Kiptoo, Housing PS Charles Hinga wrote to the Treasury reminding it to adjust rent rates for the houses by 10% beginning November 1.
The adjustment, according to the letter, had been agreed upon in January 2021 but was yet to be effected.
Moreover, PS Hinga argued that rent rates for the said house had stagnated since 2001.
As such, the state considered the gap as an avenue to increase revenue for the government as an appropriation in aid for the state department of Housing.
The resolution to reconsider increasing rent for civil servants living in government-owned houses, as per the letter, was reached during a meeting held on September 22.
“It was noted then, that rent rates have stagnated since 2001 for most government Housing, therefore it remains an avenue that an increase Appropriation in Aid (AIA),” the statement read in part.
News about the increment sparked reactions with a section of Kenyans voicing their reservations against the plan.
An X user named Amos Ng’ong’o criticized the new move, noting that it was a contradiction of the Affordable Housing Plan championed by the state.
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“What will make “Affordable Housing affordable with the deductions of 6% from our salaries and wages if the government has declared an increment of 10% on their rental apartments,” the user posed.
Civil Servants grapple with more taxes
The move to increase rent on the houses came at a time Kenyans were adjusting to cope with higher deductions occasioned by fiscal changes introduced in the Finance Act 2023.
In the controversial tax amendment, the state increased taxes including the Value Added Tax (VAT) which was doubled from 8% to 16%.
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In addition, the state introduced the housing levy which would see workers pay 1.5% of their gross salaries to create a pool of resources towards the implementation of the Affordable Housing Plan.
Earlier, Nairobi County Government also announced an increment in rent rates for all houses owned by the former Nairobi County Council.
Both levels of government enacted new fiscal measures in a bid to increase revenue collected through its services, among other avenues.
