HIGHLY PRIORITISED

Return of housing levy: MPs rush to conclude housing law this month

Housing Committee chairman says new law will be in place in two weeks time

In Summary
  • Kenyans to start paying housing levy by March.
  • Committee concluding public participation on Wednesday
Affordable Housing Project in Mukuru, Nairobi county
HOUSING LEVY: Affordable Housing Project in Mukuru, Nairobi county
Image: X

The housing levy is headed for a comeback this month as MPs burn the midnight oil to have the anchoring Bill signed into law in the next two weeks.

This means Kenyans might have the 1.5 per cent levy, that had been abolished by the courts, deducted from their salary as early as March.

National Assembly Housing Committee chairman Johana Ngeno told journalists that the Bill will be prioritised when the house resumes next week.

He said it will be on the President’s table for assent before end month.

Johana was speaking after a meeting with the National Lands Commission, which was giving its input on the Affordable Housing Bill, 2023.

The joint committee of Finance and housing will conclude public participation on Wednesday and immediately retreat for a report writing.

The report should be ready on February 13 when Parliament resumes after long recess, Ngeno said.

"We might not have control over the house business committee, but we know that they will also consider this bill as a priority and next week, when parliament resumes, we will debate the bill and make necessary amendments," he said.

“After tomorrow, we will go down to writing report and thereafter table it in parliament to give MPs a chance to debate. Two weeks from now we should be done with this Bill.”

Ngeno, who chaired the Tuesday session, assured Kenyans that the joint Committee will incorporate all the views of Kenyans as captured during public participation.

Among other things, Kenyans raised issue with the discriminatory levy, which currently targets only those in formal employment.

Some taxpayers also called for reduction of the 10 per cent deposit when one wants to buy the housing unit.

Some Kenyans also raised concerns with land ownership given that the houses are constructed on public land, while the same is not paid for by the beneficiaries.

Appearing before the Committee, NLC yesterday admitted confusion on how the national government project will be implemented on county-owned land.

The commission chairman Gershom Otachi called for a relook into the Bill to address the relationship that will exist between the two levels of government in regards to the housing project.

He said the law is not express on how devolved units stand to benefit for land in their possession and which have been surrendered for the housing project.

“One of the things that needs to be thought out is what happens when country land is reserved and the fund is for the national government,” Otachi said.

“That relationship is beyond what we can comment on.”

He said the Commission was not consulted in the proposed Affordable Housing Bill, 2023.

Otachi at the same time rooted for National Housing Corporation to manage the process of acquisition of public land to be used in the housing project.

“They [NHC] has been there for a long time and have been doing the same thing. I don’t know if there is a better vehicle than that,” he said.

The revelations come at a time when lawmakers are considering to include a clause in the Bill to address the thorny issue of land.

The Bill did not have any clause on how land will change hands from public to private..

Ngeno said the session was crucial as it will help in tying the loose ends of the bill.

“We are dealing with the land issue which is one of the most important factor, most of the houses is going to be built on public land, there is none – as far as we are concerned – is goping to be built on private land,” Ngeno said.

The committee will on Wednesday meet with Council of Governors as well as the Attorney General as it closes the public participation phase.

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