The legal government advisor at the same time said the proposed legislation meets the requirements as was advised by the courts when it declared the housing levy unconstitutional.
Muturi while appearing before the joint committee of Parliament said the bill whereas complies with the law, MPs have a constitutional duty to ensure it resonates with majority of Kenyans.
Kenyans had during the public hearings raised many issues including the high deposit amount, possibilities of people failing to get the housing units despite being deducted the levy.
The National Assembly’s Finance and Housing committees which has been doing the public participation was also told to consider revising the 1.5 per cent being levied downwards.
Appearing before the joint team, Muturi urged the MPs to use their law making power to ensure majority of Kenyans benefit.
“You need to tighten the loose ends to ensure at least majority of Kenyans benefit from the law,” Muturi said.
The AG also said all the issues raised by the courts have been addressed in the proposed legislation responding to concerns of possible legal roadblocks after passing the law.
“We are of the view that this bill addresses all the three issues raised by the courts, but like I said, these are just proposals and the House has the powers to make further amendments to make the bill even better,” he said.
In declaring the housing levy illegal, the court said the deduction of the levy from employees is discriminatory as it targeted formally employed Kenyans leaving out non-formal income earners.
The court also cited absence of comprehensive legal framework to anchor the levy.
Muturi however told MPs that the bill now brings on board Kenyans in the informal employment.
“By proposing to enact the bill, therefore, the government is responding to the ruling of the court by establishing a legal framework for affordable housing and management of the funds to be collected under the proposed law,” Muturi said.
“The bill further addresses the certainty of the law in terms of good governance, transparency and accountability as envisaged under Article 10(2)(a) and (c) of the constitution. To this end we are of the view that the draft bill comprehensively addresses all the three issues raised by the honourable court.”
Muturi also dismissed claims of a potential clash between counties and national government on the ownership of the land on which the affordable housing will be built.
During public participation, concerns were raised how counties will benefit from their land donated for the project and which is later sold to private individuals.
According to Muturi, the Lands Act addresses the process of converting public land to private and vice versa.
“Any such overlap in the discharge of functions within the two levels of government should be addressed by express provisions in the law to provide for consultations, and if there is a potential conflict, the committee is at liberty to put provisions in the law to provide for consultations,” Muturi said.
Baringo North MP Joseph Makilap demanded that the AG assures Kenyans that proposed law have enough safeguards to block cartels from buying more than one unit using hustlers.
In response, Muturi admitted to the gaps that he expressed fears may see individuals getting more house units through proxies.
“I have also thought about it myself, it is a real possibility, but the ministry seems to suggest they will put in place measures to avoid that,” he said.
The AG also said the bill involves counties and must be taken to the Senate contradicting Kimani Ichung’wah’s position that the bill has nothing to do with the devolved units.
“I want to emphasise this because I did note in the memorandum of the bill, the sponsor of the bill said it doesn’t concern counties,” the AG said.
“I think we will be cheating ourselves, there is no harm in the Senate also considering this bill and if they make amendments then there can be mediation on the bill.”
The committee finalised public participation on Wednesday and will be retreating to write the report which will be tabled in Parliament next week.
