Ruto says govt to adopt a case-by-case approach in affordable housing deposit requirement » Capital News
NAIROBI, Kenya, Mar 19 – President William Ruto has moved to address concerns regarding the flexibility of affordable housing deposits, assuring Kenyans that the government will adopt a case-by-case approach towards the scheme’s deposits.
Speaking during the signing of the Affordable Housing Law on Monday, President Ruto stated that the government would consider individual circumstances regarding deposit requirements.
This decision comes in response to public outcry over the 10 per cent deposit of the affordable housing unit’s value, with concerns raised about its affordability, particularly for marginalized groups such as women, youth, and persons with disabilities.
“When the public said that the 10 per cent deposit was high, I am very happy that the Senate has considered and now we are going to find a way around it, that it is not going to be a mandatory requirement for anybody to have a deposit of 10 percent and it will be assessed on a case by case basis,” the head of state indicated.
He highlighted the commitment of the board tasked with providing policy direction to adhere to this new directive, commending both legislators and the public for their input in shaping the legislation.
He acknowledged the significance of public participation saying “is not a sterile provision in the constitution” but a “meaningful insertion to bring the views, the understanding, ideas and the suggestion of Kenyans to speak life and breath into legislation, regulation, policy and other government program in a very substantive and meaningful way.”
The signing of the affordable housing law sets the stage for the reinstatement of housing levy deductions, with a 1.5 per cent tax on both employers and employees taking effect at the end of this month.
In addition to preventing double taxation, the newly enacted law offers a 15 per cent relief for employees making contributions to the Levy.
It also includes tax-related incentives such as reducing the turnover tax from 3 per cent to 1.5 per cent, particularly beneficial for those engaged in the informal sector.
The legislation, which received approval from both the Senate and the National Assembly last week, includes amendments involving the participation of county governments.
Under the new provisions, governors will establish county liaison committees to oversee the implementation of affordable housing programs, ensuring regional participation and coordination.
Moreover, the bill empowers the Board to engage in agreements with various entities for project implementation, including county governments, the National Housing Corporation, and relevant state departments.
Eligibility requirements for applicants’ mandate submission of identification documents and tax compliance certificates.
The legislation emphasizes prioritizing slum residents in affordable housing projects and addresses institutional housing challenges through partnerships with public institutions for development.
Additionally, it tackles issues of employment, support for local communities, and internship opportunities for students.
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