More Deductions Await Mwananchi As President Is Schedule To Sign Housing Levy To Law
President William Ruto, during a tour in Bomet on Saturday, March 16, confirmed his intention to sign the bill, granting the government the authority to resume implementing the Housing Program within the confines of the law on Monday, March 18.
The bill that was recently passed in parliament by legislators aims to reinstate the President’s housing initiative by levying a 1.5 per cent charge on workers’ gross pay. Once signed, housing levy deductions, among other amendments, could commence as early as the end of March 2024, pending confirmation.
The bill was introduced in Parliament in December last year, responding to a High Court ruling declaring the previous housing levy unfair and unconstitutional.
The new legislation extends the levy beyond formal sector employees’ salaries and establishes the Affordable Housing Fund, overseen by a board of directors.
The bill also introduces County Affordable Housing Committees to ensure locals involvement in the project, acknowledging housing as a devolved function.
Persons who voluntarily saved for housing but haven’t been allocated a unit can now apply for refunds or opt for an affordable mortgage, under the provisions of the new bill.
