Workers to start paying housing levy in March; Ichung’wah
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Kimani Ichung’wah says will begin paying housing levy in March under the new Affordable Housing bill still in parliament
Kimani Ichung’wah says will begin paying housing levy in March under the new Affordable Housing bill still in parliament.
President William Ruto has received assurances from Kimani Ichung’wah, the majority leader of the National Assembly, that the Kenya Kwanza side will leverage its numerical advantage in the House to enact the new affordable housing bill.
Ruto’s affordable housing programme was halted after the courts twice declared the 1.5 percent housing levy meant to finance it illegal.
However, Ichung’wah gave the President the assurance that the Kenya Kwanza side will do everything in their power to ensure that the new law that is currently before the House passes without a hitch on Monday, at the beginning of a Cabinet retreat in Naivasha.
“Your Excellency I’m happy to report we began debate last week on Thursday, we were not able to conclude and hopefully we should be able to conclude that tomorrow (Tuesday) afternoon,” he said.
The new bill contains amended clauses which the courts said were unconstitutional.
Ichung’wah assured the President that the plan to enact a new law was on course and the 1.5 percent housing levy will be back before the March payrolls for workers are finalized.
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“We should be able to conclude that business tomorrow (Tuesday), hopefully on Wednesday afternoon we get into third reading…and be able to process the bill forward to the Senate so that they are able to advertise it by Friday, do the public participate and be able to get a new Affordable Housing Bill before the next payroll,” he said.
“Usually, many corporations both private and public process their payrolls after the 15th of the month, so we hope by the 15th of March, your Excellency, you will have assented to the new Affordable Housing Bill.”
In a decision on November 28 last year, three judges of the High Court ruled that the introduction of the housing levy through amendment of the Employment Act by Section 84 of the Finance Act, 2023 lacks a comprehensive legal framework in violation of Articles 10, 201, 206 and 210 of the Constitution.
However, President Ruto insisted that the affordable housing plan would continue and asked the court to give the government time to conclude the creation of a new law to actualize the housing levy.
“For the avoidance of doubt, I want to tell them that we were in the reprocess of creating a law to guide the process and they should have given us time,” Ruto, who spoke in Meru on Friday, January 26, said.
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