President William Ruto has made a commitment to provide affordable housing to ordinary Kenyans, including small-scale vendors like Mama Mboga, with the promise of a monthly rent as low as Ksh3,000. This announcement came shortly after the controversial Affordable Housing Bill was signed into law, marking a significant step towards enabling more Kenyans to become homeowners.
“With as little as Sh3,000 monthly rent, ordinary Kenyans, including Mama Mboga, will have the opportunity to own a house. Our housing program aims to uplift the living standards of low-income earners across the nation,” declared Ruto during the signing ceremony at State House Kenya in Nairobi County. The event, attended by key government officials and construction workers, emphasized the administration’s dedication to addressing housing challenges.
The Affordable Housing Bill, despite facing opposition from certain lawmakers questioning its constitutionality, successfully passed through both Houses of Parliament before landing on the President’s desk for approval. Effective immediately, Kenyans will commence paying the mandatory housing levy, as outlined in the newly enacted law.
The housing levy, set at 1.5% of income for both employers and employees, is scheduled to come into effect by the month’s end. This levy, previously revoked by the courts, has been reintroduced through legislative efforts to bolster the Kenya Kwanza administration’s initiatives.
After encountering setbacks, notably a High Court ruling in November 2023 declaring the housing levy implementation as lacking proper legal foundation, the government was prompted to establish a new legal framework. This led to the creation of the Affordable Housing Bill, 2023, aimed at addressing court concerns.
To address the court’s issues, the bill expands the application of the 1.5% affordable housing levy beyond formal employment salaries. Released officially on December 4, 2023, the bill underwent public scrutiny across 19 counties, culminating in its approval by the National Assembly on February 21, 2024. Subsequently, the Senate passed the bill on March 12, 2024, with amendments.
Accepting the Senate’s amendments, the National Assembly passed the bill without further changes on March 14, 2024, paving the way for its enactment into law. Under this legislation, both salaried individuals and those earning income in Kenya will be subject to a 1.5% housing levy, marking a significant step towards realizing affordable housing for all Kenyans.
