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President William Ruto has offered reassurance to Kenyans facing displacement to make way for affordable housing developments, promising alternative rental accommodations provided by the state. He announced that the government has devised a plan to cover their rent for two years to facilitate the smooth implementation of the project.
Addressing congregants during a Palm Sunday service at ACK Emmanuel Church in Makadara, Nairobi, the President emphasized that evictions would not be enforced forcefully.
“The government will ensure that Kenyans have a place to reside while awaiting the construction of affordable housing. This is our commitment. We will allocate funds for two years’ rent elsewhere. Upon completion of the housing project, they will then transition to their new homes,” stated the President.
Ruto underscored the objective of enhancing living standards for residents of slum areas, revealing plans to erect approximately 12,000 affordable housing units in Makadara.
These developments come in the wake of the recent enactment of the Affordable Housing Act, which received parliamentary approval despite opposition from lawmakers aligned with the Azimio la Umoja coalition, who contested its legality and constitutionality.
The Act establishes a regulatory framework for the collection of the affordable housing levy and the execution of affordable housing programs. The Kenya Revenue Authority (KRA) has confirmed that the Affordable Housing Levy will be implemented from March 19, 2024, with employers mandated to deduct 1.5 percent of employees’ gross salaries and remit it alongside a corresponding contribution from the employer.
Individuals earning income in Kenya are also required to remit 1.5 percent of their gross income as the Affordable Housing Levy to the KRA.
KRA has outlined the procedures for remittance, clarifying that employers must declare the levy under sheet “M” of the PAYE return on the iTax platform, generate a payment slip under the tax head “agency revenue,” and make payments through designated channels.
Furthermore, the employer’s contribution to the Affordable Housing Levy is recognized as an allowable deduction under Section 15 of the Income Tax Act.
