By Peter Ochieng
The controversial Affordable Housing Bill, 2023 is now law.
President William Ruto signed the Bill into law on Tuesday morning, at State House, Nairobi. Signing of the Bill was initially slated for Monday, before being rescheduled to today.
The presidential ascent paves the way for return of the Housing Levy, whereby all Kenyans in formal employment and their employees will remit a deduction of Sh1.5 percent of their salaries each month, in a bid to support the government’s affordable housing scheme.
The levy takes effect next month. The Bill, now law, establishes four components of affordable housing.
They are the social housing Unit designed for people earning less than Sh20,000, middle class for persons earning between Sh20,000 and Sh149,000, and rural housing for those outside urban settings.
“With as little as Sh3,000 monthly rent, ordinary Kenyans, including Mama Mboga, will own a house. Our transformational housing program will dignify the lives of every low-income earner in our country,” Ruto said upon signing of the Bill into law.
Speaking during the event, Cabinet Secretary (CS) for Lands and Housing Alice Wahome said over 120,000 youth are already working at affordable housing units across the country.
“Over 120,000 young men and women working in these sites. We anticipate that by the time the balance of 48,000 units is put in place, close to 300,000 youths will be working at our sites. Your Excellency, by signing this bill today, you have opened doors for low-income earners to start earning,” she said.
“Your Excellency, under your leadership, we currently have 45,525 units under construction. For contracting purposes and tendering, we have already advertised 48,988 housing units,” she added.
The National Assembly passed the Bill with amendments in February, before the Senate followed suit over a week ago.
Nairobi Review initially reported that the Bill establishes the Affordable Housing Fund, which will be financed through a 1.5 percent housing levy on gross salaries.
This levy, previously challenged in court, has been reintroduced through the amendments to address concerns.
Clause 2 of the Bill introduces “institutional housing” for public institutions like universities, hospitals, and security forces expanding the scope of the program beyond individual homes.