Economy
Housing levy back as President Ruto signs Affordable Housing Bill
Tuesday March 19 2024
President William Ruto. FILE PHOTO | NMG
President William Ruto has signed into law the Affordable Housing Bill, 2023, paving the way for the reinstatement of housing levy deductions from this month.
The signing ceremony was conducted in State House Nairobi and attended by key government officials.
Employees will now be deducted 1.5 percent of their gross monthly pay, the amount that will be matched by their employer.
Read: No reprieve for Kenyans as housing Bill is passed in Senate
Under the new law, Kenyans in the informal sector and others not salaried will pay 1.5 percent of their monthly gross earnings to fund the Kenya Kwanza government’s pet housing project.
The new legislation ropes in workers in the informal sector in order for the regulations to be in agreement with the High Court ruling that rendered it unconstitutional last year.
The legislation received approval from both the Senate and the National Assembly last week and now includes amendments that involve the participation of county governments.
Under the new provisions, proposed by Senate, governors will establish county liaison committees tasked with overseeing the implementation of the affordable housing programme.
Last week President Ruto said that the affordable housing project will not only provide employment opportunities for young people in the country but also ensure there is sufficient land available for agriculture and food production.
Read: Housing levy hits Sh12bn in the first three months
“Housing is going to give us jobs for our young people, give us decent living conditions for our people, is going to assist us in making sure that we have land for food production and is also going to make sure that we grow our manufacturing sector,” the President said while speaking in Bomet.
