MANDATORY DEDUCTION

Return of housing levy as Ruto set to sign Bill into law

Kenyans will start paying the levy at the month

In Summary
  • Kenyans will be from this month required to pay the mandatory housing levy as president William Ruto signs into the law the controversial Bill.
  • The President on Sunday revealed that he would sign the Affordable Housing Bill into law on Monday to legalise the deductions.
President William Ruto during the interdenominational thanks giving service for Tourism PS John Ololtua held in Kilgoris, Narok County on Sunday 2024
President William Ruto during the interdenominational thanks giving service for Tourism PS John Ololtua held in Kilgoris, Narok County on Sunday 2024
Image: PCS

Kenyans will from this month pay the mandatory housing levy once President William Ruto signs the controversial Bill into law.

Ruto said he will sign the Affordable Housing Bill into law on Monday to legalise the deductions.

“Tomorrow, (Monday) I will be sign into law the Affordable Housing Bill to get jobs for our youths,” he said.

Ruto spoke on Sunday during an interdenominational Church Service in Kilgoris, Narok county.

This means the 1.5 per cent tax from both the employer and the employee will take effect at the end of the month.

The courts abolished the levy in January but the Kenya Kwanza administration quickly moved to have it back through legislation.

Parliament approved the controversial bill that was vehemently opposed by Azimio lawmakers.

The Senate passed it last Tuesday, with a raft of amendments, following its passage by the national assembly.

However, the National Assembly on Thursday endorsed the Senate’s amendments, essentially escaping the mediation route that could have derailed the Bill.

Ruto said the signing of the Bill will create job opportunities for the youth.

He said 13,000 youths have already secured jobs through the housing programme.

“My target is at least 300,000 youths working in the housing programme by next year,” the President said.

Ruto said the housing agenda is one of the key programmes the government has initiated to eradicate poverty.

The president has also concluded bilateral agreements with several countries including Canada, Germany, France and Israel to have at least one million youths work abroad.

Other programmes include, creation of digital jobs through the establishment of computer hubs in every ward, export of labour and expansion of export processing zones.

“I made a commitment to create opportunities for young people… it is the first time in the history of our nation that the government has a clear plan on how to create jobs,” Ruto said.

He urged Kenyans to shun division and embrace unity for the country to prosper.

“I want all of us to unite and work together. Let us work together as Kenyans and end divisions,” Ruto said.

The President said his entire administration is backing opposition chief Raila Odinga for the African Union Commission chairmanship

“We have reached a point where we want a Kenyan to get a chance to lead AUC. All of us, let’s unite, without considering politics and tribe, to ensure a Kenyan gets the position," he said.

“That is what we must do as a nation We must always look for opportunities for people to work together. Where there is unity, there are blessings,” he said.

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