Rédaction Africa Links 24 with Daily Nation
Published on 2024-02-04 21:00:00
The government of Kenya, under the Kenya Kwanza administration, has made a significant commitment to addressing the country’s housing deficit. Their plan aims to deliver 250,000 new homes annually and increase the number of mortgages from 30,000 to 1,000,000 by 2027. This initiative will increase the percentage of affordable housing supply from two percent to 50 percent, effectively addressing the housing shortage in the country.
A key component of this effort is the Affordable Housing Bill 2023, which represents a strategic attempt by the government to develop a pool of resources focused on providing affordable housing. The Bill was first presented in parliament on December 7, 2023, by the National Assembly Majority Leader, aiming to address gaps raised by the High Court.
The central concept of the Bill is the housing levy, which was first introduced in the Finance Bill 2023 under Section 84. However, in November 2023, the High Court ruled the levy as unconstitutional due to its opaqueness and discriminatory nature. Efforts have since been made by the Bill to establish a legal structure for the affordable housing levy and address concerns raised by the High Court. Nevertheless, certain aspects warrant additional consideration.
First, the strategy for ensuring monthly deductions for the housing levy in the informal sector remains unclear. It is crucial for the government to provide a clear explanation of how it intends to ensure compliance in the informal sector, where it may be more challenging to deduct from individuals without formal pay documentation.
Second, the Bill needs to explicitly outline all circumstances warranting exemptions from mandatory contributions to the Levy. Clear criteria for exemptions need to be provided to ensure fairness and transparency.
The government should also refrain from directly engaging in unit construction to mitigate potential losses and financial risks through government-led projects. By doing so, they can also ensure timely project delivery.
Moreover, the funds collected from the levy should be used strictly towards land acquisition, development of supporting infrastructure, and strengthening the mortgage plan to ensure that the funds are used effectively.
The proposed penalty in the Bill, set at three percent of the total unpaid amount to be remitted to the Fund, has sparked concerns over its severity. This aspect of the Bill should be reviewed to ensure that penalties are fair and reasonable.
In conclusion, the government’s efforts to address the housing deficit in Kenya are commendable. However, it is essential to refine and enhance the Affordable Housing Bill to ensure its effectiveness and fairness. These recommendations are crucial for ensuring that the Bill serves its intended purpose of providing affordable housing to the people of Kenya.
It is important for the government to address the concerns and considerations highlighted in the Bill to ensure that it is comprehensive and fair in its implementation. By doing so, the government can fulfill its commitment to addressing the housing deficit and providing affordable housing to its citizens.
– Mr. Wamayuyi is an economist who has contributed to this discourse on the Affordable Housing Bill.
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