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Housing levy Bill tops House agenda as MPs return from recess

MPs will also consider the report of the National Dialogue Committee.

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by JAMES MBAKA

News16 January 2024 - 02:23

In Summary


  • The Affordable Housing Bill 2023 is key to implementation of one of Ruto’s flagship project.
  • Majority Leader and Kikuyu Lawmaker Kimani Ichung'wah on December 7 tabled the Bill.
President William Ruto taking part in laying of foundation stone at the Nanyuki Affordable Housing Project in Laikipia County on January 10, 2023.

MPs will resume House sittings next month after a long recess to debate and consider various pieces of legislation that have far-reaching ramifications for President William Ruto’s administration.

Among top priority when House resumes on February 13 will be consideration of the Affordable Housing Bill 2023, which is key to implementation of one of Ruto’s flagship project.

The court dealt a blow to Ruto’s housing programme after declaring the Housing Levy unconstitutional for being discriminatory and creating unequal principles.

Racing against time to regularise the levy, Majority Leader and Kikuyu Lawmaker Kimani Ichung'wah on December 7 tabled the Bill to create a legal framework to oversee the Affordable Housing Levy.

MPs will also consider the report of the National Dialogue Committee (NADCO), which proposes a raft of recommendations of the issues bedeviling the country.

Implementation of the report requires close collaboration of Ruto and Azimio leader Raila Odinga and their MPs.

Ministries will also defend their budget proposals before House committees, as Parliament will be resuming some three months before the end of the financial year.

The Affordable Housing Bill 2023 will perhaps be the centre of focus as Ruto has vowed he will do whatever it takes to ensure the implementation of the flagship project.

He has maintained that he will not keep quiet as courts put on hold his development plans.

“How do you expect me to be quiet when a few people are rushing to the courts to stop plans to create job opportunities for Kenyans,” he said at a church service in Uasin Gishu on January 7, 2024.

The Bill, which has gone through the first reading, also seeks to establish a board that will manage the fund.

The court had raised issues on the management of the fund.Busia senator Okiya Omtatah Omtatah has argued that by tabling the Bill, the government inadvertently conceded that there was indeed no legal framework under which the Housing Levy operates under the Finance Act, 2023.

A petition challenging the Affordable Housing Bill (2023) has already been filed in court.

The petition filed by seven Kenyans and the Mt Kenya Jurists Association argues that over the last year, too many taxes and levies have been introduced and that if the court does not intervene, there is a likelihood that the private economy will be starved of resources to finance other obligations and commitments.

“Despite the fact that there is no legal framework for the affordable housing schemes – which basically seeks to build high-rise ghettos across the Kenyan countryside – the government has engaged the overdrive gear to demolish existing homes and to evict homeowners from all areas covered by the Kenya Kwanza Government as ideal for the construction of high-rise ghettos,” read court papers.

The petition notwithstanding, Rarieda MP Otiende Amollo maintained that Ruto is not likely to respect court decisions.

"William Ruto is coming out in his true colours," Amollo said in reference to remarks by the Head of State on alleged impunity and corruption at the Judiciary.

 "Court orders mean nothing to him. I hope Chief Justice Martha Koome will reconsider the soft approach to this regime and assert the full authority of courts,” he added.

However, MPs allied to Kenya Kwanza have defended Ruto, accusing the judiciary of being influenced by the Opposition to undermine the ruling regime.

The lawmakers are reportedly planning to push for radical surgery in the Judiciary to eliminate judicial officers who allegedly collaborate with government critics to obstruct crucial projects.

Senate Majority Leader Aaron Cheruiyot argued that several laws have not been implemented as litigants move to court and the Judiciary consistently postpones judgment.

"We must have an honest conversation with the judiciary. Known litigants who thrive on taking bribes cannot keep rushing to courts to stop government programs and easily obtain court orders," he said.

He declared that the government would take action to stop an “authoritarian” Judiciary.

A three-judge Bench comprising of Court of Appeal Justices Lydia Achode, John Mativo and Mwaniki Gachoka ordered the maintenance of the status quo on the collection of housing levy and other taxes introduced by the Finance Act 2023 until January 26.

The Affordable Housing Bill 2023 has retained the 1.5 per cent deductions from employees’ salaries and an additional 1.5 per cent from the employers for every employee on their payroll.

The bill makes it express that the monies collected will not be deposited in the consolidated fund and will only be used to set up affordable houses.

Meanwhile, the NADCO report risks running into headwinds in the House in the wake of heightened political temperatures.

Prime Cabinet Secretary and Foreign Affairs Minister Musalia Mudavadi has accused Azimio leadership of attempting to derailing the report.

Mudavadi questioned Jubilee Party's hesitance in accepting the NADCO report that has been approved by both teams at the talks.

The committee was co-chaired by Wiper boss Kalonzo Musyoka (Azimio) and National Assembly Majority Leader Kimani Ichung’wah (Kenya Kwanza).

“Let us respect that due process. The report will be tabled in Parliament and they will give us directions,” he added.

Currently, neither Ruto’s Kenya Kwanza nor Raila’s Azimio has the absolute majority in either the Senate or the National Assembly.

The report that was released after the end of bipartisan talks on November 29, 2023.

In the recent weeks, Raila has attacked Ruto and his administration, threatening to resume the street protests whose destructive effects pushed the President to accept the dialogue.

The report proposes amendment to the Constitution to provide that Parliament may extend the intervals within which the review of boundaries may be done by a resolution of at least two-thirds of the members.

The report also recommends that Article 140 (2) of the Constitution be amended to increase the timelines within which the Supreme Court shall hear and determine a petition challenging the validity of presidential election from 14 days to 21 days.

Former President and Jubilee Party leader Uhuru Kenyatta is reportedly leading the Azimio faction that has rejected the report.



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