President William Ruto's pet project came an inch closer to fruition after the Affordable Housing Bill was passed in the Senate on Wednesday, March 13.
27 Senators voted for the bill while 10 rejected it, culminating the near-two month process in Parliament. The bill is set to be signed into law by President Ruto.
Throughout the Parliament proceedings, several amendments proposing changes to the structure of the bill were tabled. The majority of the amendments tabled by the opposition were shut down during the voting process.
On the other hand, several amendments were approved in Parliament with the changes aimed at addressing concerns raised during the public participation process.
Kenyans.co.ke takes a look at the amendments adopted in the Affordable Housing Bill, 2023.
National Assembly
Amendment:
Introduction of "institutional housing" which factors in public institutions such as universities, hospitals and security forces.
Why it Matters:
The scope of those paying the Affordable Housing program now extends to public institutions and will not just affect individual homes.
Amendment:
All Kenyans are required to pay the 1.5 per cent levy.
Why it Matters:
Both salaried and non-salaried Kenyans will be required to remit the amount, with a section of MPs arguing that the amendment solved the issue raised in court that the bill was discriminatory.
Amendment:
Inclusion of entities to implement the housing project. These include the National Housing Corporation, the State Department of Housing, the Private Sector and the County Government.
Why it Matters:
Once the payment is deducted from Kenyans' salaries, 30 per cent will be channelled toward the National Housing Corporation, 30 per cent to slum upgrading, maintenance and rehabilitation, and the rest to the State Department for matters relating to the Affordable Housing program.
Amendment:
Treasury CS to determine the percentage that a Kenyan will be required to pay before occupying the house.
Why it Matters:
The previous version of the bill indicated that for one to own a unit under the Affordable Housing program, they needed to pay a 10 per cent deposit. This is in addition to the 1.5 per cent of the monthly gross income.
Treasury CS Njuguna Ndung'u will be tasked with prescribing the right amount fit to accommodate all Kenyans.
Amendment:
Kenyans who will not remit the levy will be subject to tax recovery procedures.
Why it Matters:
The taxman will recover the amount defaulted by the employer using the set procedures under the law.
Senate
Amendment:
One person is eligible for a single housing unit in the housing program.
Why it Matters:
This aims at ensuring every Kenyan is accorded the opportunity to access a housing unit.
Amendment:
A person who misses out on a unit after making voluntary savings can ask for a refund with accrued interest.
Why it Matters:
The said person will be required to write a 90-day notice to the agency which allows the money to be recovered.
Amendment:
The beneficiary of the housing unit shall not sell his or her unit unless with the prior written consent of the board.
Why it Matters:
This aims at restricting the ownership of the housing units and deterring people from owning multiple units.
Amendment:
If one fails to pay the levy after the due date, a penalty equal to 3 per cent of the unpaid amount is imposed for each month that it remains unpaid.
Why it Matters:
This aims to discourage Kenyans from defaulting on payments. The penalties and amounts owed shall be recovered as a civil debt from the defaulter.
