The National Assembly Joint Committee on Housing and Finance has proposed five major changes to the Affordable Housing Bill including scrapping the 10 per cent deposit requirement and the reduction of the time for deposit refunds.
In the report that was tabled on the August House on Wednesday and analysed by Kenyans.co.ke, the lawmakers agreed with a section of Kenyans who lamented that the 10 per cent deposit would lock out most citizens from owning homes.
As a result, the Committee proposed the deletion of the clause requiring Kenyans to make a 10 per cent deposit before owning a house.
In return, the MPs recommended the government issue new guidelines on the deposit for the houses.
Refunds for Deposits
As highlighted in the bill, Kenyans will have a leeway to make savings towards meeting the deposit for their desired houses. However, given the demand for housing, the bill acknowledges that some Kenyans may miss on the houses and require a refund.
According to the proposed bill, the refunds are to be done in 90 days. However, the MPs recommended that the time frame be reduced by 30 days.
House Allocation
The MPs proposed that the houses be allocated on a one-house per KRA pin model to ensure that the distribution is done fairly.
"On clause 33, the stakeholders recommended the deletion of the clause in its entirety to address concerns about potential exploitation by the wealthy using proxies. According to their submission, allowing the clause to remain intact could facilitate loopholes that enable individuals of higher economic status to exploit the system unfairly, potentially disadvantaging those in lower income brackets," stakeholders opined during the public participation process.
"The Committee noted stakeholders' concerns about the potential misuse of the provision and recommended its deletion. Further, it also recommended that the Bill be amended to provide safeguards for instance one KRA pin one house, or any other unique identifier," the Committee responded.
Housing for Institutions
Another concern that was raised during the public participation, especially by people from higher learning institutions was the inclusion of students in the allocation of affordable houses.
Consequently, the MPs proposed that housing for universities and other institutions be included in the programme.
Internship
Another major recommendation that the Committee has adopted is the involvement of the university and TVET students in the house construction.
"The Committee agreed to amend the Bill to provide for internships for students in TVET institutions situated within areas where affordable housing is being undertaken," read the report in part.
Proposals That Have Been Turned Down
On the flip side, the MPs rejected notable proposals that had been made by Kenyans during public participation. This includes whether the 1.5 per cent deductions should be on the gross or basic salary.
As proposed in the bill, the deductions will still be based on the gross income/salary.
Additionally, the MPs rejected proposals by a section of employers who requested to be excluded from topping up the deductions of their employees.
