President William Ruto took a decisive step forward on Tuesday as he signed the Affordable Housing Bill into law, following its successful passage through Parliament. The signing ceremony was a significant moment held at State House Nairobi, marking a crucial milestone in the government’s efforts to address housing challenges in Kenya.
Kenyans to start paying as per Affordable Housing Bill
Starting this month, Kenyans will be required to pay the housing levy, amounting to 1.5 per cent of their income, with contributions coming from both employers and employees. This levy is a key component of the Affordable Housing Bill, aimed at generating funds to support affordable housing initiatives across the country.
Despite facing strong opposition from lawmakers, particularly those in the Opposition who deemed the bill illegal and unconstitutional, Parliament ultimately approved the legislation. The Senate played a pivotal role in refining the bill through amendments before it was endorsed by the National Assembly, streamlining the process and avoiding potential delays through mediation.
The Affordable Housing Bill establishes a robust framework for collecting the housing levy and implementing various affordable housing programs. It also emphasizes accountability measures, such as requiring the Board to develop long-term investment plans approved by the Cabinet and Parliament, guiding fund allocation for housing projects.
Moreover, the bill outlines the involvement of County Governments in affordable housing, mandating the establishment of County Affordable Housing Committees to advise governors on local housing programs. It also sets clear eligibility criteria and application procedures for individuals seeking affordable housing units.
The reinstatement of the housing levy through legislation follows a recent court decision overturning its previous abolition. President Ruto, speaking passionately about the benefits of the affordable housing project, emphasized its potential to create job opportunities for youth, improve living conditions, and support agricultural and manufacturing sectors.
In a speech delivered in Bomet, President Ruto highlighted the multifaceted benefits of the affordable housing program, underscoring its importance in national development agendas. His commitment to signing the bill reflects a concerted effort to advance Kenya’s housing sector and promote economic growth and prosperity for all citizens.
