There is ongoing public participation countrywide on the impact of affordable housing on the life of Kenyans. Article 118 of the Constitution states that Parliament must facilitate public participation in its legislative role. However, is this the right project when a majority of Kenyans are facing starvation with stagnated economy and foreign debts affecting the country in general?
The project came after a proposal in section 76 of the Finance Bill, 2023 to change the Employment Act, 2007 to empower employers to compulsorily deduct 1.5 per cent from employees’ salaries. A further 1.5 per cent is to be contributed by the employer.
The government claims the housing programme targets to build 200,000 units with at least 500 units years to enable ordinary citizen own a house by paying Sh2,400 monthly. It crystal clear a majority of Kenyan live below the poverty line, an implication a majority of the hustlers will not manage to buy these houses. If affordable housing materialises, chances are that it will be landlords and developers who are going to benefit rather than the intended hustlers?
There are higher chances the houses will be grabbed wholly by landlords and that government employees, having already accepted lower wages because of the housing levy deduction, will still find themselves paying high rents to access housing. There is potential risk that some would be beneficiaries will find that, because of interest rates or the accrual of high rent arrears, they in fact become debtors.
It is true that offering affordable housing is an imperative venture; however, better and fairer non-compulsory means of raising the much needed revenue for housing should have been considered, not compulsory taxation from formal or non-formal sector workers. And since contributions are payable from income that has already been taxed and are taxed again when the funds are drawn down, it implies employees are exposed to double taxation.
For the affordable housing project to be relevant to the ordinary citizen, the National Housing Corporation must establish policies or criteria that will be used to identify those who already own property-landlords-from scrambling to again to own these houses. The affordable housing project might have been a good idea but it has many shortcomings that must be addressed before its completion. It is fraudulent that a low income worker will be allowed to buy houses in instalments when these houses are on public land.
That is pure graft that can be labeled 'Illegal and irregular allocation of public land”; it is like the government is selling public land indirectly without public knowledge in the form of affordable housing.
The NHC must also ensure the cost of land is included on the total cost of the entire house or else the project is bound to face many court battles from legal experts and Kenyans in general.
The writer is the national organising secretary, Ford Kenya