President William Ruto on Tuesday, March 19, 2024, signed the Affordable Housing Bill into law to allow the continuation of housing levy deductions.

This was after the signing of the Bill that was scheduled to take place on Monday March 18, was postponed to Tuesday.

The Bill was passed both in the Senate and National Assembly, with amendments that included involvement of county governments in the housing program.

After signing of the bill, all employed and non-salaried Kenyans will be required to pay 1.5 percent of their monthly income to the Affordable Housing Fund, to facilitate construction of affordable houses.

The housing levy had attracted criticism from the opposition leaders and the civil society in the country, who maintained that it was an extra burden to Kenyans who are struggling with the high cost of living.

In addition, the courts and citizens also questioned the legal framework concerning the housing levy. 

For instance, a three-judge bench in 2023 barred the collection of the housing levy on grounds that it was discriminatory and a direct violation of Article 10 of the constitution of Kenya.

Meanwhile, Azimio leader Raila Odinga on February 22, urged Kenyans to put on notice MPs who betrayed their wishes by voting for the Affordable Housing Bill, 2023.

Speaking during a press briefing in Nairobi, the Azimio leaders insisted that President William Ruto’s affordable housing program remains unfair, discriminatory and unconstitutional as it was declared by the court.

“We would like to first congratulate the bold Azimio members of parliament who during the second reading of the controversial Bill remained firm to the wishes of Kenyans and voted against the Bill.

“Secondly, we ask Kenyans to now put on notice the members of parliament who betrayed their wishes by voting for the punitive Bill,” Azimio noted in a statement.

On the other hand, county governors through public participation raised concerns on why the national government was implementing the housing program yet the function is devolved.

As a result, governors will now participate in the affordable housing program by forming county liaison committees to oversee its implementation.