Kenya’s Affordable Housing Bill Becomes Law

Kenya's Affordable Housing Bill

On March 19, 2024, Kenyan President William Ruto signed into law the Affordable Housing Act, initiating a key change in the nation’s housing policy. The Act mandates a 1.5% housing levy on monthly salaries of both employees and employers, aimed at financing affordable housing projects. While this initiative promises to enhance housing accessibility, it also imposes an additional financial burden on the populace, sparking concerns over the strain on disposable income.

The legislation, ratified by both legislative chambers, broadens the involvement of county governments and delineates a multifaceted housing framework. This framework accommodates various income groups, from Social Housing for earners below Ksh.20,000 to Middle and General Affordable Housing, extending up to incomes of Ksh.149,000, and includes provisions for Rural Housing.

The execution of the Act will be managed by entities such as the Ministry of Housing, National Housing Corporation, and county governments, with oversight by the Affordable Housing Board. Special attention is given to upgrading slums and preventing redundant housing allocations, with a commitment to sourcing materials and labour locally.

Despite its potential for positive change, the Affordable Housing Act faces scrutiny over its financial implications for citizens and the feasibility of its ambitious targets. For Kenyans, the law represents a double-edged sword, offering the prospect of improved housing accessibility but at the cost of increased financial contributions.

This legislative move signifies a critical step towards tackling Kenya’s housing shortage, yet it underscores the necessity for balanced and sustainable solutions that align with the economic realities of Kenyan citizens.


Please note that the information provided in this article is for general informational purposes only and should not be construed as legal advice. It is always advisable to consult with a qualified legal professional to discuss your specific circumstances and obtain tailored legal counsel.

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