Kenyans could resume paying housing levy this month as Ruto to sign Bill on Monday

The government might resume deducting the 1.5 per cent Affordable Housing levy from the end of this month.

This as President William Ruto says he will on Monday sign into law the amended Affordable Housing Bill, 2023, which factors the reasons the courts cited when it declared it unconstitutional.

Ruto was speaking in Chepalungu Constituency, Bomet County, where he was accompanied by several leaders including his deputy Rigathi Gachagua, Roads CS Kipchumba Murkomen and National Assembly Majority Leader Kimani Ichung’wah.

“Jumatatu naenda kuweka sahihi sheria mpya ya Affordable Housing ndio tuhakikishe ya kwamba tumeweka msingi dhabiti...tuhakikishe ya kwamba by next year tuwe na vijana elfu mia tatu ambao watakuwa wanafanya kazi kwa programme ya Affordable Housing,” he said.

“That is the plan we have. We committed ourselves that we’re going to make sure that we build 200,000 houses every year and we employ half a million young Kenyans every year.”

The High Court on November 28, 2023 declared the housing levy as unconstitutional, ruling that it violated Article 10, 2 (a) of the Constitution.

"We find that the introduction of the housing levy amendment to section 84 lacks a comprehensive legal framework in violation of Article 10 of the constitution, that levy against persons in formal employment without justification is discriminatory and irrational," Justice David Majanja read the judgement on behalf of a three-judge bench.

"An order is granted prohibiting the respondent from collecting, charging on otherwise the charge known as the affordable housing act."

On January 26, 2024, the Court of Appeal upheld the High Court decision maintaining that the levy was introduced without a legal framework. 

The Bill was hence referred back to the National Assembly for concurrence before it being re-submitted to the President for final approval.

The contentious Bill sailed through the National Assembly in February and later the Senate in March this year.

It seeks to have all Kenyans, both salaried and non-salaried, pay 1.5% of their monthly pay to the Affordable Housing Fund.