Kenyans intending to buy houses under the Affordable Housing Programme will be required to present a tax-compliance certificate before being allocated a unit.
Speaking during an interview on Spice FM, Molo MP and the National Assembly Finance Committee chair, Kimani Kuria, on Thursday revealed that the requirement was introduced in the revised Affordable Housing Bill which is set for debate in the Senate.
He explained that the new requirement was aimed at ensuring that only Kenyans who contribute to the Housing Fund benefit from the programme.
This follows the decision to include those who are in the informal sector in the 1.5 per cent Housing Levy plan.
Previously, Kenyans were only required to present their Kenya Revenue Authority (KRA) Personal Identification Numbers (PINs) and have an ID before buying a unit.
"If you are buying it (the house), you certainly have an income. Therefore, it will be very unfair for someone who is earning Ksh30,000 to pay the 1.5 per cent yet someone else with a similar income doesn't pay to the Housing Fund but is qualified for a house.
"We added another qualification that said 'for you to benefit from the Affordable Housing programme, you must be tax compliant'. There is a need to provide a tax-compliance certificate," he stated.
The Affordable Housing Bill is set to be debated in the Senate during the week. MPs passed the bill before moving it to the upper house given that certain clauses touched on the county governments.
Notably, other changes that were passed by the National Assembly included the removal of the 10 per cent deposit rule.
Following the changes, the government is set to draft new guidelines that will be used to determine the deposits for the houses.
It is expected that President William Ruto will ascent to the Bill early in March before the 1.5 per cent monthly deductions can be implemented.
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Meanwhile, Attorney General Justin Muturi has advised the Kenya Revenue Authority (KRA) against the collection of the levies owing to orders that were issued by the courts.
The Housing Levy was declared unconstitutional given that only salaried Kenyans were subject to the deductions.
"Our considered opinion is that as of the date of the delivery of the ruling of the Court of Appeal, i.e on January 26, 2024, there is no legal provision that enables the collection and administration of the Housing Levy,” he advised.
