Ruto’s Affordable Housing: Kenyans Must Present Tax Certificates
Individuals in Kenya looking to purchase homes through the Affordable Housing Programme must furnish a tax-compliance certificate as a prerequisite for the allocation of a housing unit.
In an interview on Spice FM, Molo MP and Chair of the National Assembly Finance Committee, Kimani Kuria, disclosed on Thursday that the stipulation was incorporated into the updated Affordable Housing Bill, slated for discussion in the Senate.
He clarified that the latest prerequisite was intended to guarantee that only Kenyan citizens actively contributing to the Housing Fund would be eligible for program benefits.
This stems from the choice to incorporate individuals from the informal sector into the 1.5 percent Housing Levy initiative.
Before, individuals in Kenya only needed to provide their Kenya Revenue Authority (KRA) Personal Identification Numbers (PINs) and show an ID to purchase a unit.
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“If you are buying it (the house), you certainly have an income. Therefore, it will be very unfair for someone who is earning Ksh30,000 to pay the 1.5 per cent yet someone else with a similar income doesn’t pay to the Housing Fund but is qualified for a house.
“We added another qualification that said ‘for you to benefit from the Affordable Housing program, you must be tax compliant’. There is a need to provide a tax-compliance certificate,” he stated.
The Senate is scheduled to discuss the Affordable Housing Bill this week. Members of Parliament approved the bill and subsequently forwarded it to the upper house, particularly because some provisions pertain to county governments.
Significantly, the National Assembly approved various modifications, among which was the elimination of the 10 percent deposit requirement.
After the modifications, the government plans to formulate fresh guidelines that will dictate the criteria for determining house deposits.
President William Ruto is anticipated to approve the bill in early March, before the commencement of the 1.5 percent monthly deductions.
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In the meantime, Attorney General Justin Muturi has cautioned the Kenya Revenue Authority (KRA) against gathering the dues due to court-issued directives.
The constitutionality of the Housing Levy was challenged because it violated the constitution by applying deductions exclusively to salaried Kenyan individuals.
“Our considered opinion is that as of the date of the delivery of the ruling of the Court of Appeal, i.e on January 26, 2024, there is no legal provision that enables the collection and administration of the Housing Levy,” he advised.
Ruto’s Affordable Housing: Kenyans Must Present Tax Certificates