National Assembly Majority Leader Kimani Ichung’wah has introduced a bill that aims to establish a legal framework for the oversight of the affordable housing levy.
The bill was prompted by a High Court decision that deemed the tax included in the 2023 Finance Act unconstitutional and discriminatory. In the meantime, the 2023 Affordable Housing Bill proposes the establishment of the Affordable Housing Fund which will receive contributions from the Kenyan public. These funds will be allocated to President William Ruto’s legacy initiative. The bill classifies housing options into three categories: Social Housing, Affordable Housing, and Affordable Market Housing.
The costs of these choices will differ depending on an individual’s earnings. For those making less than Ksh20,000, the social housing units will vary in size from 18 to 20 square meters. Individuals with earnings between Ksh20,000 and Ksh140,000 will have the opportunity to access affordable housing units ranging from 36 to 80 square meters. Lastly, the affordable market housing units, which will be a minimum of 60 square meters, will target individuals earning over Ksh150,000.
Ichung’wah has proposed a levy that will be determined based on 1.5 per cent of an employee’s total salary. Kenyans will need to submit this amount within nine days of receiving their salary. If they fail to do so, they will face a three per cent penalty, or the government may consider it a civil debt. To qualify for a unit allocation, individuals must meet specific requirements, including being a Kenyan citizen who is at least 18 years old. Additionally, they must possess a valid identification card, a Kenya Revenue Authority (KRA) pin, and any other relevant documents as specified.
The newly introduced bill in Kenya offers its citizens the chance to secure loans specifically designed to aid in the acquisition of reasonably priced residences. The interest rates attached to these loans will fluctuate depending on the borrower’s income, ranging from three to nine per cent. To safeguard against any misuse of the funds contributed by Kenyans, the bill proposes the implementation of a penalty system. Those entrusted with managing the Fund will face either a Ksh10 million fine, a five-year prison sentence, or both, as a deterrent against any potential misappropriation.
Can someone enlighten me on…
Can someone enlighten me on this housing project. Where is the land to build the homes or is the government purchasing it from private sellers? Once completed, will the houses be sold or will they be given to individuals since they were constructed using public money? Was a private company formed to see to the construction of these homes or is a government agency leading the project? I have a feeling if those questions are not answered, this will be the biggest theft of public funds Kenya has ever experienced.
The housing levy is a huge…
The housing levy is a huge scam. Ruto and his team want the project going to enrich themselves regardless of the cost to the citizens. Kenyans must ask lots of questions why the current government is hell bent to initiate this housing scam.