President William Ruto is on Tuesday expected to sign the Affordable Housing Bill, 2023 into law.
Once the bill is signed into law, there will be no backdating of deductions as it will establish an updated body of law known as the Affordable Housing Act of 2024.
The new law would replace Section 84 of the Employment Act and the Finance Act with new Sections 31B and 31C, upon which the previous housing levy deductions were based.
This is according to Molo MP Kuria Kimani, who chairs the National Assembly Finance Committee.
The MP's sentiment has been echoed by National Assembly Majority Leader Kimani Ichung'wah who affirmed that the commencement date for the deductions would be after the assent of the bill to law.
"No deductions will be backdated... the deductions become effective immediately upon assent," Ichung'wah said.
The High Court halted the Housing Levy's implementation in November 2023 after ruling that it was imposed without a valid legal basis.
The Court of Appeal abolished the levy in January upholding the ruling by the High Court but the Kenya Kwanza administration quickly moved to have it back through legislation.
Parliament approved the Bill that Azimio lawmakers vehemently opposed.
The Senate passed it last Tuesday, with a raft of amendments, following its passage by the national assembly.
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 and is in line with the Kenya Kwanza government's manifesto.
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.
“I committed to creating 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.
