Ruto Ally Ichung’wah Proposes Revival of Housing Levy in New Bill
The Majority Leader and Kikuyu Member of Parliament, Kimani Ichung’wah, has introduced a proposal for a bill aimed at establishing a structured legal system to supervise the affordable housing levy.
This follows the High Court’s ruling that the tax outlined in the 2023 Finance Act is both unconstitutional and discriminatory.
In the interim, the Affordable Housing Bill for 2023 suggests the creation of the Affordable Housing Fund, which will redirect funds collected from Kenyan citizens toward President William Ruto’s envisioned lasting initiative.
“The bill’s principal object is to provide a legal framework for the establishment of the Affordable Housing Fund, access to affordable housing. It will impose the Affordable Housing Levy to finance the provision of affordable housing and associated social and physical infrastructure,” Ichung’wah states.
Ichung’wah enumerates three offerings: Social Housing, Affordable Housing, and Affordable Market Housing, with fees adjusted based on an individual’s earnings.
Significantly, the social housing units will measure from 18 to 20 square meters for individuals in Kenya making less than Ksh20,000, whereas the affordable housing units will range between 36 and 80 square meters for Kenyans earning between Ksh20,000 and Ksh140,000.
The housing unit designed for affordability will be a minimum of 60 square meters and is aimed at Kenyan individuals earning more than Ksh150,000.
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As per the Kikuyu Member of Parliament, a fee of 1.5 percent of the employee’s total salary will be imposed. Kenyans must submit this amount on the ninth day following the receipt of their salary.
A penalty of three percent will be imposed for delayed payment of the funds, otherwise, the government will regard it as a civil obligation.
Several conditions for assigning a unit involve possessing adult Kenyan citizenship, a duplicate of their ID card, a Kenya Revenue Authority (KRA) pin, and any other pertinent documents as needed.
“In determining the allocation of an affordable housing unit under this section, the relevant agency shall give preference to marginalized persons, vulnerable groups, youth, women and persons with disabilities,” reads part of the bill.
To prevent the misappropriation of funds saved by Kenyans by those overseeing the Fund, the legislation suggests imposing either a Ksh10 million penalty, a five-year prison sentence, or both for offenders.
According to the legislation, individuals in Kenya will have the opportunity to acquire loans for purchasing cost-effective residences at interest rates varying between three and nine percent, contingent upon their income levels.
Ruto Ally Ichung’wah Proposes Revival of Housing Levy in New Bill