The contentious Affordable Housing Bill has been signed into law by President William Ruto.
At State House in Nairobi on Tuesday, the Head of State signed the bill, allowing the unwelcome housing levy deductions to be reinstated.
The law was enacted last week by the National Assembly and the Senate with a number of changes, one of which included the inclusion of county administrations.
A 1.5% monthly cut from salaries will be made by both employers and employees, further piercing the pockets of citizens.
The Court of Appeal maintained the ruling that the charge was imposed without a legal basis after the High Court of 2023 ruled that it was unlawful.
Nonetheless, Ruto’s administration has insisted that the suspension gave space for the bill to be restructured and that the new legislative framework for the levy is what results from it.
Four components of affordable housing are established by the bill.
These consist of the following: General Affordable Housing for those making between Ksh. 20,000 and Ksh. 149,000; Middle Class for those making above Ksh. 49,000; Social Housing Unit for those making less than Ksh. 20,000; and Rural Housing for those residing outside of cities.
The Ministry of Housing, the National Housing Corporation (NHC), county governments, and private organizations that have been authorized by the Affordable Housing Board, the fund’s administration body, are a few of the organizations that will be tasked with carrying out the housing project.
The bill also specified that slum regions would be given precedence for building affordable houses and that no more than one housing unit would be allotted.
Local producers will supply the construction materials, while local communities will supply the labor.
