Big win for President Ruto as Senators pass the Affordable Housing Bill

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Big win for President Ruto as Senators pass the Affordable Housing Bill

President William Ruto now awaits to append his signature on the affordable housing Bill after Senators passed the contentious bill on Tuesday evening.

The bill was voted for by 27 senators while 10 voted against its implementation. however, there were no abstentions recorded during the proceedings.

The Bill which seeks to impose a 1.5 per cent levy on Kenyan’s Gross Income, was approved in the National Assembly with 141 lawmakers approving it at the Third Reading as opposed to 58.

At the National Assembly, Kenya Kwanza lawmakers managed to reintroduce a key provision requiring occupants to pay a deposit for housing units, a move aimed at bolstering the viability of the program. 

This was in response to concerns raised during public participation.

The breakthrough came after Senate Majority Leader Aaron Cheruiyot moved that the legislation be read for a third time, a move that ultimately secured its passage through the chamber.

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Claims that the Finance Bill 2026 introduces a new tax on mitumba clothing have sparked heated debate, prompting Kenya Kwanza leaders to come out and explain what the proposed law actually says.  At the centre of the debate is Clause 31(a)(ix)(169), which deals with the Value Added Tax (VAT) treatment of worn clothing, commonly known as mitumba, sold within the country.   According to the clause, the Finance Bill proposes to simplify the VAT treatment of the mitumba sector by ensuring that VAT is charged only at the point of importation, while domestic sales of the same goods are exempt from further VAT.  In effect, VAT will be paid once when second-hand clothes enter Kenya. After that, traders selling the clothes in local markets will not be required to charge VAT on their sales.  The proposal is intended to reduce the compliance burden on traders by ensuring that VAT is collected at a clear and verifiable point. It also removes the possibility of double taxation, making business easier for traders while reducing paperwork and helping them retain more of their earnings. Read AlsoFinance Bill heads to Ruto’s desk after National…


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