Kenyans looking to buy houses under the Affordable Housing Programme must now provide a tax-compliance certificate as a prerequisite, according to Molo MP and National Assembly Finance Committee chair, Kimani Kuria. In an interview on Spice FM, he disclosed that this new requirement, embedded in the revised Affordable Housing Bill set for Senate debate, aims to ensure that only contributors to the Housing Fund benefit from the initiative.
The move comes in response to the inclusion of individuals from the informal sector in the 1.5% Housing Levy plan. Previously, the only requisites were the presentation of Kenya Revenue Authority (KRA) Personal Identification Numbers (PINs) and a valid ID for home purchases.
Read: How to Apply for Government Affordable Housing Program in Kenya
Kuria clarified the rationale behind the tax-compliance condition, emphasizing the goal of fairness in extending benefits to those supporting the Housing Fund. The amended legislation eliminates the previous 10% deposit rule, with the government expected to formulate new guidelines for determining house deposits. The Affordable Housing Bill, having passed through the National Assembly, is scheduled for Senate debate, addressing clauses relevant to county governments.
While the 1.5% monthly deductions are anticipated to take effect after President William Ruto’s expected approval in March, Attorney General Justin Muturi has advised the Kenya Revenue Authority against collecting levies due to court orders. The Housing Levy was deemed unconstitutional, as only salaried Kenyans were subjected to the deductions, prompting the Attorney General’s recommendation against its collection and administration.
Also read: Capital Gains Tax on Real Estate
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