,

Housing Levy Makes a Comeback

Kenya's President William Ruto Signs the Affordable Housing Bill into Law in March 2024
Syovata Ndambuki Avatar

On Tuesday, 19th, March, 2024, President William Ruto signed the Affordable Housing Bill, 2023 into law during an event at State House. The Bill, which was introduced in December, 2023 in a bid to create a legal framework around the housing levy went through a series of fast paced legal processes, which included public participation, heated debates in parliament and in senate and amendments on the first draft.

The Housing Levy was declared unconstitutional on 28th, November, 2023 by the High Court. The main issues that led to this decision included, lack of a legal framework and the levy’s discriminatory nature as it only applied to salaried workers.

Under the Affordable Housing Bill, all workers will now pay 1.5% of their gross monthly income as levy, to be collected by the Kenya Revenue Authority.

During the public participation phase, issues were raised concerning exclusion of counties in implementing the Affordable Housing Projects . Housing is a devolved unit under county governments.

In response to these concerns, the Affordable Housing Bill provides a clause for the establishment of County Affordable Housing Committees which will advise governors on matters Affordable Housing.

Other changes in the final include a provision for Institutional Housing which covers housing for public institutions such as universities and hospitals. Rural Affordable Housing Program was also introduced after public participation to cater to those who do not want houses in urban centers.

The Bill signing ceremony was attended by stakeholders in the Affordable Housing Program, including casual laborers working on different sites. The laborers were given an opportunity to share their testimonies and the benefits they have reaped from the projects.

WANT MORE?

SIGN UP TO RECEIVE A QUATERLY UPDATE

I don’t spam, I promise. Just one email every three months.

Syovata Ndambuki Avatar

Leave a Reply

Your email address will not be published. Required fields are marked *