National Assembly Chief Whip Silvanus Osoro says the contentious Finance Bill, 2023 will be amended to give employers a moratorium on matching the three percent employee contribution to the Housing Fund.
Mr Osoro said there is a possibility of changes to the Bill to allow employers with loans or cash flow challenges to adjust their finances before matching the employee contributions.
The Finance Bill seeks to amend the Employment Act to allow deductions of three percent from employees' basic pay to help fund the construction of low-cost homes.
The Bill caps the deductions at Sh5,000. The proposals before the National Assembly for approval provide that “the sum of the employer and employee contributions shall not exceed Sh5,000 a month.”
“Employers feel that they will retrench and cut down their overheads. It is part of the discussion and there is a possibility of coming up with a moratorium structure,” Mr Osoro said.
