- He noted that the public participation that was conducted was a meaningful as the views from all Kenyans have been incorporated in the Act.
- Emurua Dikir MP Johana Ngeno said Kenyans who submitted during the meetings were of the opinion that the mandatory 10 percent requirement be abolished.
Image: PCS
President William Ruto was on Tuesday full of praises for the courts for rejecting the government's earlier plan to effect the affordable housing levy.
Speaking moments after signing into law the Housing Bill at Statehouse, Ruto said the court’s decision has enabled the government to have everybody remit the housing levy hence increasing the money for the programme.
“Imetusaidia. Kuna watu hawakuwa wanalipa, sasa pesa imeongezeka zaidi so tunataka kushukuru mahakama wametusaidia kutuongezea pesa ya affordable housing,” he said amidst laughter.
Loosely translated as "It has really helped us. Some people were not paying the levy, but the money has now increased so we want to thank the courts for helping us fetch more money for affordable housing."
In a decision last year, three judges of the High Court ruled that the introduction of the levy through amendment of the Employment Act by Section 84 of the Finance Act, 2023 lacks a comprehensive legal framework in violation of Articles 10, 201, 206 and 210 of the Constitution.
A three-judge bench of Justice David Majanja, Christine Meoli and Lawrence Mugambi said the imposition of the levy against Kenyans in the formal sector to the exclusion of those in the informal one is without justification, unfair, discriminatory, and irrational.
The Court of Appeal would later on January 26 2024 decline to suspend orders barring the state from deducting housing levy from Kenyans.
The appellate Judges said if they affirm the constitutional invalidity of the challenged laws, then some far-reaching decisions that will have been undertaken may not be reversed.
The Attorney General and the National Treasury had moved to the appellate court after the High Court found the deductions to be unconstitutional.
They sought orders halting the implementation of the High Court judgement that rendered the housing levy unconstitutional pending the determination of their appeal.
But Justices Lydia Achode, John Mativo and Gatembu Kairu in declining the state's application, said public interest lies in awaiting the determination of the appeal.
"This is because if the stay sought is granted at the stage, should we affirm the challenged decision, then some far-reaching decisions that will have been undertaken pursuant to the challenged laws may not be reversible," they said.
Ruto on Tuesday during the signing into law of the bill also said the move paved the way for a thorough scrutiny of the bill to ensure all crucial elements that had been left out were factored in.
“Mimi nataka nishukuru mahakama, vile walisema turudie hii maneno, walifanya vizuri. Walisema turudi tupige msasa hii sheria vizuri na sasa hiyo sheria tumeinyorosha kabisa,” he said.
(I want to thank the courts. They told us to go back to the drawing board to scrutinise this bill again, they did a good thing. The law is now streamlined)
He noted that the public participation that was conducted was meaningful as the views of all Kenyans have been incorporated into the Act.
The Head of State has on different occasions challenged the courts over the decision to slam the brakes on the housing project.
“For the avoidance of doubt, I want to tell them that we were in the reprocess of creating a law to guide the process and they should have given us time. We will also appeal the case so that we continue with the programme and create jobs for millions of Kenyan youths,” he said.
Emurua Dikir MP Johana Ngeno who spoke during the event stated that Kenyans who submitted their views during the meetings were of the opinion that the mandatory 10 per cent requirement to be allocated a unit should be abolished.
“When we talk about 10 per cent, many will be locked out so we agreed that we shall look at it case by case,” he said.
Molo MP Kuria Kimani who doubles up as the Finance Committee chair at the National Assembly said they incorporated a section which gives preference to women, youth and PWDs to avoid being disadvantaged in the housing project.
Kimani added that in the new Act, no person will be allowed to sell the house once purchased to thwart individuals who might be seeking to take advantage of the common man.
“We said one KRA, one house and so you will not be allowed to own more than one house,” he said.
Housing principal secretary Charles Hinga on his part said they are planning to redevelop the Mukuru slums.
Hinga noted that they are putting 15,000 housing units on the 53-acre land with people being moved systematically.