PS Hinga: We've collected Sh32bn from Affordable Housing Project

 

The government has so far collected Sh32 billion from the Affordable Housing Programme.

Housing Principal Secretary (PS) Charles Hinga on Wednesday revealed that the funds have been collected by the Kenya Revenue Authority.

"Since the affordable housing programme started with the Kenya Kwanza regime,  we have collected Sh32 billion. The money is being collected by KRA," he said during an interview at Spice FM.

Explaining how the collection is done, PS Hinga revealed that the money once collected doesn't go to the main account but to a Central Bank of Kenya account for housing.

"The way Parliament appropriated the money is what we call appropriation in aid. The money doesn't go to the consolidated fund but goes to our CBK account for the State Department for Housing," he added.

Reading the balance in the account, the PS revealed that as of March 19, 2024, the account had  Sh29, 473,380, 645.40 billion.

When asked where the Sh2 billion has gone, Hinga stated that the funds had gone towards some of the 29 ongoing projects.

He explained that the funds were allocated to the 29 ongoing projects.

"That is why we are building schools and hospitals within these houses. We want to make sure that schools are closely available," he said.

"On hospitals, we are working with the counties towards upgrading hospitals from one level. On physical infrastructure, we will set up feeder roads, and connect power and water."

For the current financial year, the government is anticipating to raise Sh78 billion, Hinga said.

Hinga explains that the funds also go towards social and physical infrastructure.

Lands and Housing CS Alice Wahome said more than 100,000 affordable housing units are under construction in various parts of the country.

During the launch of the Ministry's Strategic Plan for 2023-27, CS  Wahome said that the affordable housing project is meant to help curb housing deficiency.

"The development will bridge the 2 million housing deficit for the growing population in urban areas," Wahome said.

President William Ruto on Tuesday assented to the Affordable Housing Bill at State House, Nairobi after it was passed by Parliament.

This now means that Kenyans will from this month pay the housing levy. 

The 1.5 per cent tax from both the employer and the employee will take effect at the end of the month.

Parliament approved the controversial bill that was vehemently opposed by Opposition lawmakers. The Azimio lawmakers termed the legislation illegal and unconstitutional.

The Senate passed it last Tuesday, with a raft of amendments, following its passage by the national assembly.

Kenyans will no longer be required to pay a 10 per cent deposit upfront to own affordable homes, Hinga said.

The PS on Tuesday said that the 10 per cent requirement was one of the major concerns raised during public participation in the Affordable Housing Bill.

"Part of this lawmaking is public participation. One of the things the committee went through was this issue of the deposit," he said.

"Many Kenyans, everywhere said they like the programme but cannot afford the deposit. So both houses ( Senate and National Assembly) agreed that no more deposit should be required upfront to own the houses," Hinga added.

The PS was speaking at the State House after President William Ruto assented to the  Affordable Housing Bill.

Before, people seeking to be allocated an affordable housing unit were required to provide proof of a requisite deposit of at least 10 per cent of the value of the affordable housing unit being applied for.

Other requirements include copies of  Kenya Revenue Authority, personal identification number certificates, and individual national identity cards.

by MAUREEN KINYANJUI