Kenyans will from March pay a mandatory housing levy after President William Ruto signed the Affordable Housing Bill into law on Tuesday, March 19, 2024.
The Bill, passed by both Houses of Parliament last week despite opposition from a huge chunk of Azimio lawmakers who termed it unconstitutional, will ensure that salaried workers pay 1.5 per cent tax from both the employer and the employee.
“This program will make it possible for a mama mboga who today pays rent of Sh3,000 to pay Sh4,000 and own a home… this programme will give every hustler living in a shack, the chance to dignify their lives,” Ruto said at State House on Tuesday.
He added that Kenyans of diverse backgrounds will benefit from the programme, which is now set to deliver 20 per cent of social houses, and 50 per cent affordable houses. President Ruto said: “Those who want bigger houses will have the opportunity to get them as will those who want social and affordable houses.”
The courts abolished the levy, but the Kenya Kwanza administration quickly pushed it through legislation.
In November 2023, the High Court ruled that the housing levy was introduced without a legal framework, with the Court of Appeal also declining to suspend the High Court order in January 2024.
With the court blow, the government was forced to come up with a new legal framework – Affordable Housing Bill, 2023 – in order to address issues raised by the courts.
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