𝗧𝗵𝘂𝗿𝘀𝗱𝗮𝘆, 𝗙𝗲𝗯𝗿𝘂𝗮𝗿𝘆 𝟮𝟮, 𝟮𝟬𝟮𝟰 

 The National Assembly yesterday passed the Affordable Housing Bill, 2023, with amendments aimed at addressing concerns raised by stakeholders during the public participation exercise.  

 The Bill establishes the Affordable Housing Fund, which will be financed through a 1.5 percent housing levy on gross salaries. This levy, previously challenged in court, has been reintroduced through the amendments to address concerns.  

 Clause 2 of the Bill introduces "institutional housing" for public institutions like universities, hospitals, and security forces expanding the scope of the program beyond individual homes.  

 In addition, the Bill provides for the management of the Affordable Housing Fund specifically the payment out of the Fund. The payments shall include 30 percent to the National Housing Corporation; 30 percent to slum upgrading, maintenance, rehabilitation and off-take of affordable housing programmes, and 36 percent to the State Department responsible for matters relating to affordable housing in respect of institutional housing programmes and projects approved by Cabinet.  

 Local business owners in the construction industry are set to benefit as the amended Bill contains provisions that encourage the use of local materials and labour and provides opportunities for students to gain practical experience in projects.   

 In response to stakeholder concerns about the levy, Clause 7 of the Bill clarifies that levies collected under the Bill will be recoverable in accordance with the Tax Procedures Act, 2015.  

 To enhance transparency, the allocation of funds from the Affordable Housing Fund will be subject to a five-year and annual investment program with clear guidelines for agencies involved as included in Clause 11A and 11B.  

 Regarding implementation of the Housing programmes, the revised Bill lays out clear procedures for collaboration with National and county governments, private institutions, and financial institutions for project development and mortgage schemes. 

 The Affordable Housing Bill also specifies the agencies involved in implementing the program, including county governments, National Housing Corporation, The Kenya Slum Upgrading, Low-Cost Housing and Infrastructure Trust Fund established under the Government Financial Management (Kenya Slum Upgrading, Low-Cost Housing and Infrastructure Trust Fund) Regulations 2006, the State Department responsible for matters relating to affordable housing, the National Social Security Fund and private sector agencies as may be approved by the Board to support affordable housing and institutional housing. 

 The Bill has now been referred to the Senate for consideration.