By Lauryne Akoth
President William Ruto on Tuesday assented to the Affordable Housing Bill in the State House, after it was passed by both Parliament and the Senate last week.
Kenyans are expected to brace for the return of the statutory deductions as the signing of the bill into law means the deductions will be reflected in this month’s payslips. All employers and employees are required to remit a deduction of 1.5% from their monthly salaries.
The high court had declared the bill unconstitutional in 2023 citing that the bill did not provide a legal framework, particularly in the collection of the levy.
With the Senate passing the bill with amendments that were endorsed by Parliament, the bill currently establishes a framework for the collection of the affordable housing levy as well as the implementation of the affordable housing programs.
Additionally, it sets up accountability measures, including mandating the Board to develop a five-year investment plan and an annual investment plan. These plans must receive approval from the Cabinet and subsequently will be presented in Parliament.
These investment plans will direct the allocation of funds for executing the affordable housing programs. Furthermore, the Bill outlines the responsibilities of County Governments in affordable housing and establishes County Affordable Housing Committees.
These committees will advise governors on affordable housing programs within their respective counties. The legislation outlines four categories of Affordable Housing.
They include the Social Housing Unit, catering to individuals earning below Ksh.20,000, the middle-class housing for those with incomes above Ksh.49,000; General Affordable Housing, tailored for individuals earning between Ksh.20,000 to Ksh.149,000; and Rural Housing, designed for residents living outside urban centres.
Several entities will be tasked with implementing the Housing project, including the Ministry of Housing, the National Housing Corporation (NHC), County governments, and Private entities approved by the Affordable Housing Board, which oversees the fund’s management.
Furthermore, construction materials will be procured from local manufacturers, and labour will be sourced from local communities.
The bill also emphasizes prioritizing slum areas for constructing affordable houses and ensuring there’s no duplication of housing unit allocations.