President William Ruto now promises ordinary Kenyans including Mama Mboga a Ksh3,000 monthly rent house.
The Head of State said this in a statement following the signing of the controversial Affordable Housing Bill into law noting that they will be able to own a home with as little as Ksh3,000 rent per month.
"With as little as Sh3,000 monthly rent, ordinary Kenyans, including Mama Mboga, will own a house. Our transformational housing programme will dignify the lives of every low-income earner in our country. Assented to the Affordable Housing Bill, @StateHouseKenya, Nairobi County," Ruto declared.
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With as little as Sh3,000 monthly rent, ordinary Kenyans, including Mama Mboga, will own a house. Our transformational housing programme will dignify the lives of every low-income earner in our country.
Assented to the Affordable Housing Bill, @StateHouseKenya, Nairobi County. pic.twitter.com/2DwMWYaJJp— William Samoei Ruto, PhD (@WilliamsRuto) March 19, 2024
Ruto signs Housing Bill into law
The signing ceremony, held at State House Kenya in Nairobi County, saw President Ruto don construction attire, surrounded by key government officials and construction workers.
The Affordable Housing Bill, which faced opposition from some Azimio lawmakers who questioned its constitutionality, was passed by both Houses of Parliament before landing on the President's desk for approval.
Effective immediately, Kenyans will begin paying the mandatory housing levy, as stipulated by the newly enacted law.
This levy, set at 1.5% of income for both employers and employees, is slated to take effect at the end of the month.
The housing levy, previously abolished by the courts, has been reinstated through legislative efforts by the Kenya Kwanza administration.
After setback
In November 2023, the High Court declared that the housing levy had been implemented without a proper legal foundation.
In January 2024, the Court of Appeal decided not to suspend the High Court's ruling.
Following this setback, the government was compelled to create a new legal framework called the Affordable Housing Bill, 2023, to address the concerns raised by the courts.
To tackle the issues highlighted by the court, the bill has extended the application of the monthly 1.5 per cent affordable housing levy to cover incomes beyond just salaries from formal employment.
The Affordable Housing Bill (National Assembly Bill No. 75 of 2023) was officially released on December 4, 2023, as per the Kenya Gazette Supplement No. 236 of 2023 on the same date.
On December 7, 2023, the bill received its first reading in the National Assembly and was referred to a Joint Committee comprising the departmental committees on Finance and National Planning, as well as Housing, Urban Planning, and Public Works.
This Joint Committee undertook extensive public engagement across 19 counties. Subsequently, the bill was approved by the National Assembly on February 21, 2024. It was then forwarded to the Senate Speaker.
The Senate also conducted public consultations and passed the bill on March 12, 2024, with some amendments.
The National Assembly accepted the Senate's amendments, leading to the bill being passed without further changes on March 14, 2024. This cleared the path for it to be signed into law by the appropriate authorities.
Under the new Affordable Housing law, both salaried individuals and those earning income in Kenya will be subject to a 1.5 per cent housing levy.
