The Affordable Housing Bill of 2023, which recently passed through the National Assembly has introduced a change that will affect both salaried and non-salaried Kenyans.
Under this new legislation, all citizens will be obligated to allocate 1.5% of their income towards the Affordable Housing Fund. This amendment, one of 49 in total, aims to rectify issues highlighted by the court, which previously suspended the housing levy on grounds of discrimination.
Despite the bill sailing through the third reading, some opposition leaders have however remained steadfast in their stand against the bill. They argue that the bill lacks clarity, especially concerning the measurement of gross income for non-salaried individuals.
Nominated MP and ODM National Chairperson, John Mbadi, had pointed the absence of a clear formula to determine the 1.5% deduction from non-salaried Kenyans’ gross income.
Additionally, the opposition also accused Parliament of hastily passing bills that primarily serve governmental interests.
Addressing concerns raised by salaried individuals, National Assembly Finance and Planning Committee Chair, Kimani Kuria, emphasized the principle of equity.
“And this is the complaint by salaried people…they’re saying why are you deducting money from me to build a house for someone else who has an income yet they are not paying the tax…so to tie that, we’re saying if you have to benefit from that house, you must have demonstrated that you’re paying the housing levy,” Kuria stated.
The bill also designates various entities responsible for executing the housing project, including County Governments, the National Housing Corporation, the State Department of Housing, and the Private Sector. MP Kuria explained that these entities would build houses according to an investment program and subsequently transfer ownership to the Affordable Housing Fund for management.
Furthermore, the revised bill nullifies the Affordable Housing Fund Regulations, stipulating that all payments made through the Boma Yangu platform will be redirected to the Affordable Housing Fund upon its implementation.
