The High Court has dismissed a case challenging the implementation of the Affordable Housing Bill 2023.
In the lawsuit, Kisumu-based activist Lawrence Opiuo had contested the process, arguing that the National Assembly had rushed through the legislation of the Affordable Housing Act without adequate public participation.
However, the court observed that public hearings and consultations with stakeholders and experts had concluded by January 30. It stated that it would not intervene in the legislative process.
While dismissing the case, Justice Mwanaisha Shariff emphasized that the National Assembly had fulfilled its obligations in conducting public participation on the bill.
“This court finds that the public participation conducted by the National Assembly was effective and compliant with the required conditions,” the court stated.
The affordable housing levy was passed by a majority of legislators on February 21, 2024, with all proposed amendments from the joint committee being approved, advancing the bill. However, opposition MPs, disappointed with defeated proposals, expressed frustration and walked out of parliament.
Significant amendments made during the third reading included granting discretionary powers to the Treasury Cabinet Secretary to determine the percentage payable by prospective homeowners before occupying the house. The original bill had stipulated a 10% deposit requirement.
Moreover, the bill now mandates tax recovery procedures for employers and employees who default on levy remittances, ensuring compliance with existing laws.
MPs also voted to authorize the fund board to allocate funds for institutional housing and housing project off-takes. Additionally, loans will now be subject to reducing interest, with restrictions imposed on buyers changing units arbitrarily.
