Big Win For Ruto As Senate Approves the Housing Bill

In a hurry? Here’s a quick summary…

• The Affordable Housing Bill, compelling all Kenyans to contribute 1.5% of their monthly income to the Affordable Housing Fund, was passed in the Senate despite vocal opposition.
• Legal battles surrounding the bill, including constitutional challenges and a lack of a legal framework, have characterized its journey, with the Court of Appeal recently upholding a previous ruling against the levy’s implementation.

In a significant development, the Affordable Housing Bill was decisively passed in the Senate on Tuesday, garnering widespread support from the majority. 

During the final reading in the House, which concluded just minutes before 7:00 pm, 27 senators voted in favor of the Bill, while 10 opposed it with strong arguments.

Deputy Speaker Kathuri Murungi announced, “The ayes have it. The Senate therefore stands adjourned until tomorrow Wednesday at 9 am.”

The essence of the Bill revolves around the establishment of the Affordable Housing Fund, which mandates all Kenyans, whether employed or not, to contribute 1.5% of their monthly earnings towards it.

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Opponents of the Bill, mainly comprising the minority, raised concerns about its constitutionality, contending that it should not be shielded from legal scrutiny.

Senator Moses Kajwang from Homa Bay questioned the long-term implications of the Bill, emphasizing the need for thorough deliberation. 

He queried, “Is this legislation meant to serve us for a short-term period or is it geared towards addressing housing challenges for generations to come?”

The Senate’s approval mirrors a similar endorsement by the National Assembly on February 22, 2024, where the majority of Members of Parliament voted affirmatively.

However, the Affordable Housing Levy has been embroiled in a legal tug-of-war between the government, the judiciary, and the populace. 

A three-judge bench in 2023 halted the levy’s collection, citing discrimination and violation of constitutional principles. 

This decision was upheld by the Court of Appeal on January 26, 2024, underscoring the absence of a legal framework for its implementation.

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Now, the Bill is slated for review by the National Assembly for concurrence before being presented to the President for final approval, marking a critical juncture in the trajectory of affordable housing legislation in Kenya.