Cotu boss Atwoli rejects bid to tax workers for housing plan

The Central Organisation of Trade Unions-Kenya (Cotu) has rejected the proposed National Housing Development Fund (NHDF) that was suggested in the 2018-2019 budget tax proposals.

In a statement, Cotu Secretary-General Francis Atwoli said the proposal is against the International Labour Organisation (ILO) Convention 095, on protection of one’s wages.

Mr Atwoli said that although the financial plan aims at creating jobs and implementing the Big Four Agenda, additional taxes would anguish already burdened workers.

“Cotu fully supports the position taken by the Federation of Kenya Employers (FKE) to oppose the proposed amendment demanding employers to contribute 0.5 per cent of the employee’s gross monthly salary to the NHDF,” he said.

“We acknowledge the existence of the Housing Act; however introducing another tax to fund President Uhuru Kenyatta’s agenda will strain both employers and employees,” he added.

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The proposal was presented by National Treasury Cabinet Secretary Henry Rotich.

It seeks to amend Section 31 of the Employment Act 2007 to deduct one per cent of every employee’s earnings towards NHDF.

Mr Atwoli said the proposal could also scare away investors, with arbitrary levies imposed on both workers and employers.

“While Cotu supports the presidential directive on the Big Four Agenda, particularly on housing, prior consultations are important to bring all involved parties on board, including workers,” Mr Atwoli stated.

He demanded clarity on how contributions to the kitty would be managed and safeguarded.