Kericho Senator and Leader of Majority at the Senate, Aaron Cheruiyot, has put forward conditions under which a Kenyan can be exempted from paying the Housing Levy.
In the Tuesday, March 12, order paper, Cheruiyot advocated for several amendments to the Affordable Housing Bill 2023 to ensure its benefits extend to all Kenyans.
Furthermore, he has proposed changing the name to the Rural and Urban Affordable Housing Act 2024. Cheruiyot has introduced a new clause aimed at allowing certain Kenyans to be exempt from paying the levy.
According to the proposals from the senator aligned with the United Democratic Alliance (UDA), individuals diagnosed with a terminal illness by a certified medical professional would be eligible for exemption from paying the levy.
Additionally, Kenyans who are residing in a rural area and own a certificate of the title registered in their name will not required to pay the levy if the amendments are approved.
When the levy was introduced in 2023 Kenyans living in the rural area raised concerns adding that they would not benefit from the affordable houses since they had already built homes.
Another condition for Kenyans to be exempted is that they should be engaged in agricultural farming or business activities whose annual turnover is less than Ksh288,000 per year.
"The Cabinet Secretary shall provide by notice in the Gazette that the aforementioned persons are exempt from section 4 to the extent specified in the notice," the Senator stated.
Cheruiyot further proposed that Kenyans who enter into a subsisting mortgage that is not contemplated under the act should be excluded from paying the levy.
Also, those Kenyans who are aged 50 and above and are engaged in informal business activities should be exempted.
The last category is any person with less than five years remaining to statutory retirement at the time of the enactment of this act.
Notably, the deduction of the Housing Levy was halted by the Court of Appeal on January 26. The three-judge bench, Lydia Achode, John Mativo and Mwaniki Gachoka, ruled that the levy was suspended until the case was finalised.
The judges also revealed that if the levy is found unconstitutional, the government will be directed to refund the money.
"The trial Court held that the Housing Levy was introduced without a legal framework. It also held that the levy was targeting a section of Kenyans. In our view, the public interest lies in awaiting the determination of the appeal," read part of the ruling.
