President William Ruto has signed the controversial Affordable Housing Bill into law, paving the way for the resumption of housing levy deductions.
The signing ceremony was initially planned for Monday morning but postponed to Tuesday morning, where it was transformed into a public event.
Hundreds of youth who were working in construction sites before the project was stopped by the court were present at State House together with senior government officials to witness the signing.
Previous bill assentions at State House have been private events only attended by the president, speakers of the two houses of parliament, select cabinet secretaries and the leaders of government business in parliament.
“This signing ceremony will enable us to increase the number of housing units under construction to over 100,000,” said Lands and Housing Cabinet Secretary Alice Wahome.
Last week, both the Senate and the National Assembly passed the bill, incorporating amendments that extend its scope to involve county governments. The legislation mandates all Kenyans, regardless of employment status, to contribute 1.5% of their monthly earnings to the Affordable Housing Fund.
The levy has been a point of contention, sparking debates among the government, judiciary, and citizens, with many raising concerns about its legal basis.
In 2023, a three-judge bench prohibited the levy collection, citing discrimination and a breach of Article 10 of the Kenyan constitution.
Governors, during public consultations, expressed reservations about the national government’s unilateral implementation of the housing program, considering housing falls under devolved functions.
As part of the bill’s amendments, governors will establish county liaison committees to supervise the program’s execution.
