Jobless Kenyans To Also Pay Housing Levy In Ruto’s Affordable Housing Bill

The National Assembly Majority Leader Kimani Ichung’wa has presented the Affordable Housing Bill 2023, aiming to rectify the issues that led to the High Court declaring the housing levy unconstitutional in November 2023.

Key changes:

• Expanded Levy Base: The bill addresses the court’s concerns about discrimination by expanding the housing levy base beyond salaried Kenyans. This now includes individuals with non-salaried income that may not be easily trackable by the Kenya Revenue Authority (KRA).
• Levy Rate: The levy remains at 1.5% of gross income, applicable to both salaried and non-salaried individuals.
• Payment Deadline: Kenyans are mandated to pay the levy by the ninth working day after the month in which their gross income was earned.
• Levy Collection: The bill empowers the Housing CS to appoint the KRA as the official collector of the housing levy, addressing concerns regarding the Ministry of Lands’ previous appointment.
• Dedicated Fund: The bill establishes a dedicated fund for collecting and managing the housing levy, ensuring transparency and accountability.

Overall, the Affordable Housing Bill 2023 seeks to address the High Court’s concerns and pave the way for a more equitable and efficient implementation of the National Affordable Housing Program.