Kenya’s President Ruto Signs Affordable Housing Bill into Law

President William Ruto of Kenya has signed into law the Affordable Housing Bill, 2023, reinstating housing levy deductions from this month onwards. The signing ceremony, held at State House Nairobi, was attended by key government officials. Under the new law, employees will be deducted 1.5 percent of their gross monthly pay, which will be matched by their employers. Additionally, Kenyans in the informal sector and those not salaried will also contribute 1.5 percent of their monthly gross earnings to fund the government’s affordable housing project.

This legislation aims to address concerns raised by a High Court ruling last year, which rendered the previous housing levy unconstitutional. The bill, which received approval from both the Senate and the National Assembly, includes amendments involving the participation of county governments. County governors will now establish liaison committees to oversee the implementation of the affordable housing program.

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President Ruto stressed that the affordable housing project will not only provide employment opportunities but also ensure sufficient land for agriculture and food production. The new law imposes harsh penalties, including a KSh20 million fine or a 10-year jail sentence, on any state officer found misappropriating public funds allocated to the Affordable Housing Project.

Furthermore, President Ruto appointed Dr. Linda Nkatha to chair a board tasked with overseeing housing funds. The board comprises representatives from various stakeholders, including workers’ representatives, employers, and county governments.

President Ruto expressed confidence that the implementation of the Affordable Housing Programme will transform the lives of Kenyans by providing jobs, decent housing, and reducing agricultural land fragmentation. He commended Parliament and Kenyans for their input in passing the bill, highlighting the importance of dignified living conditions for families across the country.

Despite the government’s aims to address housing challenges, the law has faced criticism from the opposition and segments of the population, who feel burdened by new taxes. Nevertheless, President Ruto remains committed to constructing affordable housing units and creating jobs as part of his administration’s agenda.