President William Ruto has assured Kenyans who will be displaced to give room for affordable houses that they will be given alternative rental homes to stay.
He said the government has a plan to pay their rent for two years to pave the way for the project.
Speaking when he attended Palm Sunday service at ACK Emmanuel Church Makadara, Nairobi, the President said there will be no forceful evictions.
“The government will give Kenyans a place to stay as they wait for the Affordable Houses to be constructed. That is our work. We shall give you money for two years to rent somewhere else, when we finish construction, you will then go back to the new house,” he said.
The President said the goal is to raise the living standards of Kenyans living in slums.
He said the government is looking to construct at least 12,000 Affordable Houses in Makadara.
This comes days after the President assented to the Affordable Housing Bill making it an Act.
Parliament approved the law despite resistance by Opposition lawmakers.
The Azimio lawmakers termed the legislation illegal and unconstitutional.
The Senate endorsed the law last Tuesday, with a raft of amendments, following its passage by the National Assembly.
The National Assembly on Thursday endorsed Senate’s amendments, essentially escaping the mediation route that could have derailed enactment of the law.
The Act establishes a framework for the collection of the affordable housing levy and implementation of the affordable housing programmes.
The Kenya Revenue Authority said the Affordable Housing Levy will take effect on March 19, 2024.
The Authority is the designated collector of the Affordable Housing Levy.
“This takes effect from March 19, 2024. Employers are therefore required to deduct the AHL from employees’ gross salary and remit it together with a matching contribution from the employer of 1.5 per cent of the gross monthly salary for each employee,” the statement reads.
“Additionally, all other individuals who earn income in Kenya are required to remit 1.5 per cent of their gross income as the Affordable Housing Levy (AHL) to KRA.”
KRA said the date for remittance of the Affordable Housing Levy is the ninth working day after the end of the month in which the gross salary was due or gross income was received or accrued.
KRA clarified that all employers are required to declare the AHL under sheet “M” of the PAYE return on itax; generate a payment slip under the tax head “agency revenue” and tax sub-head “Housing Levy”; and make payments at KRA agent banks or mobile money through eCitizen Paybill Number 222 222 or by dialing *222#.
According to KRA, the employer’s contribution to the Affordable Housing Levy is an allowable deduction under Section 15 of the Income Tax Act.
