Housing levy is back! Ruto assents to new Affordable Housing Bill
What you need to know:
- Under the new law, employees will be deducted 1.5 per cent of their gross monthly pay.
- New legislation ropes in workers from the informal sector to align with the High Court ruling.
President William Ruto has signed into law the new Affordable Housing Bill that reintroduces a mandatory 1.5pc levy on income months after courts declared the deductions illegal.
The Head of State assented to the Bill at an elaborate event held at State House, Nairobi with top Kenya Kwanza leadership in attendance.
Under the new law, employees will be deducted 1.5 per cent of their gross monthly pay, with a similar percentage being matched by employers.
The new legislation ropes in workers from the informal sector to align with the High Court ruling that rendered the levy unconstitutional last year.
The legislation received approval from both the Senate and the National Assembly last week, and now includes amendments that involve the participation of county governments.
Under the new provisions, proposed by Senate, governors will establish county liaison committees tasked with overseeing the implementation of the affordable housing programme.
Under this law, Kenyans in the informal sector and other non-salaried Kenyans will pay this levy in consonance with the High Court ruling that rendered it unconstitutional.
Last week, President Ruto said the affordable housing project will not only provide employment opportunities for young people in the country but also ensure there is sufficient land available for agriculture and food production.
