Government Ready to Change Plans Over Affordable Housing Levy

The government is ready to resort to voluntary levying so as to finance the Affordable Housing Programme should the case filed in court opposing the deductions be decided otherwise.

According to Government Spokesperson, Col. (Rtd) Cyrus Oguna, the government has many options on how it can meet the needs of its citizens.

Should the case go south, then it will look at other modalities to ensure the success of the programme, in as much as potential investors are already coming on board.

He reiterated that the government was keen on the need for housing and many Kenyans want affordable housing as well and they will not hesitate to do voluntary levying on Kenyans who are interested in owning houses and are willing to be deducted the housing levy.

Oguna added that the programme is a private sector driven but that the government is keen on providing a conducive environment through the provision of land and incentives that will allow private developers to deliver on affordable housing programme, hence the levy.

The Housing Tax was to take effect last month following a public notice by the government in April, ordering employers to deduct and remit the levy by date 9 of every month.

The Ministry of Transport, Infrastructure, Housing, Urban Development, and Public works and the Kenya Revenue Authority (KRA) mid-April instructed employers to remit the deductions towards the housing project by the 9th of every month.

He, however, was reserved in his comments while answering questions from journalists because the case is still in court.

Oguna added that over 100 potential sites have been identified countrywide, and they represent over 11,000 acres on which affordable housing projects will be constructed.

He further noted that the Park Road Project will comprise of 1,370 housing units once completed and that the development is ongoing for all blocks with the first 228 housing units to be completed by September 2019 and distributed to the beneficiaries.

He noted that so far, over 25 counties have signed a Memorandum of Understanding with the National Government to have the National Housing Corporation put up 3,00 housing units as part of the Affordable Housing Program.