Ruto Signs Affordable Housing Bill Into Law, Reinstates Levy Deductions


Ruto Signs Affordable Housing Bill Into Law, Reinstates Levy Deductions

President William Ruto has signed the Affordable Housing Bill into law at State House in Nairobi after the National Assembly and Senate passed it last week with various revisions.

The bill will deduct 1.5 percent of Kenyans’ monthly wages from the Affordable Housing Fund, with deductions beginning immediately to speed up the construction of affordable housing.

The bill’s sponsor, Majority Leader Kimani Ichung’wah, stated that the signing would establish a new legislative framework and that deductions would take effect upon the bill’s adoption.


Thirdway Alliance Party chairman Ekuru Aukot has expressed concerns about the government’s implementation plans, specifically the taxing requirements and the use of gathered monies.

He chastised Ruto’s administration for disappointing Kenyans living below the poverty line and stressing the lack of clarity surrounding the allocation of newly built houses.

The Affordable Housing Bill, which had been challenged in court, was adopted by both the Senate and the National Assembly.

The measure requires all Kenyans to contribute 1.5% of their monthly earnings to the Affordable Housing Fund. However, the housing levy has been challenged in court with allegations of discrimination and constitutional infringement.

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A three-judge bench previously declared the housing levy collection unlawful, triggering changes to the measure. The administration plans to implement the levy deductions by the end of March 2024.

Aukot, a critic of President Ruto, has highlighted worries about the law’s enforceability and the repercussions for the majority of Kenyan citizens. Beatrice Elachi, an MP, advocated for a focus on offering solutions and pushing Kenyans forward.

Housing Principal Secretary Charles Hinga announced that the government would give priority to Kenyans who were among the first to apply for and pick houses under the Affordable Housing Programme.

The government will allocate residences on a ‘first come, first served’ basis, requiring prospective applicants to save Ksh200 prior to account activation.
Ruto commended the new elements of the Affordable Housing Act.

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