All Kenyans, salaried and non-salaried, will be required to contribute to the 1.5% housing fund. President William Ruto speaking at a past event. This is according to the draft Affordable Housing Bill 2023, which attempts to correct errors pointed out by the court. In November 2023, the High Court suspended the housing levy, saying it was discriminatory. Who should pay Ruto’s housing levy? National Assembly Finance Committee chair and Molo MP Kuria Kimani noted that the Bill directs that every person with an income should be subject to the levy deductions. “I respect the high court decision that the housing levy is discriminatory… targeting only the employed and not the unemployed. “Most importantly, the housing levy lacked a legislative framework because every levy in this country that is collected actually has an act of Parliament that backs it,” Kuria explained. Kuria noted that ongoing public participation in affordable housing project will shape the law to create room for all Kenyans. “If the contribution has to be non-discriminatory, the fund has to be contributed by those who are salaried and those who are not,” he added. What the new Bill proposes on housing levy The Affordable Housing Draft Bill proposed that the levy shall be deducted at the rate of 1.5% of (a) the gross salary of an employee, (b) or the gross income of a person received or accrued, which is not subject to the levy under paragraph (a) of the Bill The Bill does not clearly define the kind of income accrued by non-employed persons, which will be subject to deductions. Ruto dismissed the court decision, saying there is no greater public interest than millions of Kenyans seeking employment via the programme Facts about housing levy collection In the first quarter of the 2023-2024 financial year, employers and employees collectively contributed KSh 11.83 billion towards the mandatory housing development levy. The Kenya Revenue Authority (KRA) projected a collection of KSh 63.2 billion in Housing Development Levy in the 2023/2024 financial year.
by Wycliffe Musalia