President William Ruto has signed the Affordable Housing Bill into law, paving the way for the reintroduction of housing levy deductions.
Speaking at State House in Nairobi on Tuesday, President Ruto said the implementation of the Affordable Housing Programme will transform the lives of Kenyans at the bottom of the pyramid by creating jobs, providing decent housing and reducing the fragmentation of agricultural land.
The Affordable Housing Bill, which was passed by both the Senate and the National Assembly, provides a framework for the collection of the Housing Levy and the implementation of the Affordable Housing Programme.
“I would like to thank Parliament and Kenyans for their contribution to the Bill that I have just signed into law,” said President Ruto.
Deputy President Rigathi Gachagua said the housing programme will provide Kenyans with decent homes.
For his part, Cabinet Secretary Musalia Mudavadi noted that the signing of the bill into law will pave the way for the implementation of the project.
Under the new law, all companies and their employees will be deducted 1.5% of their monthly salaries.
The tax was ruled illegal by the High Court in 2023 and the Court of Appeal upheld the ruling, arguing that it was imposed without a legal framework.
However, Ruto’s government has argued that the suspension has allowed the law to be restructured, resulting in a new legal basis for the levy.
The bill sets out four components for affordable housing. These include Social Housing for those earning less than Ksh.20,000, Middle Class for those earning more than Ksh.49,000, General Affordable Housing for those earning between Ksh.20,000 and Ksh.149,000 and Rural Housing for those living outside urban areas.
According to the amendments, governors will form county liaison committees to oversee the committees to oversee the implementation of the affordable housing programme.
