Win for counties as Housing Bill ropes them in administration of affordable housing project

Source: Capital FM Kenya
Author: Irene Mwangi

NAIROBI, Kenya, Mar 16 - Parliament has approved devolved units taking administration of the affordable Housing programs in a bill that now awaits President William Ruto's signature.

This follows a move by Members of the National Assembly to approve amendments forwarded by the Senate that gave county governments a legitimate hand in the flagship project by the Kenya Kwanza regime.

In the amendments fronted by senators which were concurred by the National Assembly, counties will form the County Rural and Urban Affordable Housing committees for administration purposes.

The committees will be tasked with developing a framework for affordable housing in coordination with the national government agencies mandated to oversee the project.

In the Bill, Members of the County Assemblies (MCAs) and the Public Works Department will also be roped in the program.

The critical changes in the bill were also the reduction of levies that were to be taken up by the Kenya Revenue Authority (KRA) from an earlier proposed 2 percent to 0.5 percent.

"Some of the key amendments that are proposed on the Bill by the Senate is the role of county governments," said majority leader Kimani Ichung'wa.

To ensure smooth operation and proper financing of the affordable housing program, the 47 county committees will receive 0.5 percent of the collected affordable housing kitty to finance their operations.

"Not less than point five percent (0.5%) of the monies to the county committees for the administration of the County Committees as may be approved by the Cabinet Secretary for the time being responsible for the National Treasury," read the bill.

The chairperson of the County Committee must have at least five years' experience in matters relating to housing, built environment, banking, or finance and be a holder of a degree from a university recognized in Kenya.

He or She must be a person who has resided in the county for not less than five years.

The chairperson of the County Committee shall hold office for a term of three years and may be eligible for re-appointment for an additional final term of three years.

Finance and National Planning Chairperson Kimani Kuria emphasized that the definition of different categories of affordable housing units based on monthly income is crucial.

The bill has categorized the affordable housing program into social housing, affordable housing, affordable middle-class housing, and rural affordable housing.

"The inclusion of County Affordable Housing Boards and the definition of social housing to encompass rural housing, low-income housing, social housing, and affordable housing are important changes," he stated.

But even with the changes forwarded by the Senate, members of the national assembly have poked holes on the bill arguing some technical issues have been overlooked.

"The technical issues we raised in this Affordable Housing Bill, the legal issues we raised, the policy issues still remain untouched. And to that extent, these amendments do not improve the original Bill and they are all for rejection," said Rarieda MP Otiende Amollo.

"At least they considered some amendments and in fairness they've endeavored slightly to try and improve one or two things but they've still overly failed miserably," he added.

Kitui Central constituency MP Makali Mulu reasoned that the framework for the distribution of the houses to Kenyans remains a glaring issue.

"The issue is, once these houses are done, do we have some affirmative action to make sure those Kenyans who are not able to even pay for the deposits will still be able to get those houses?" he posed.

For one to be eligible for the Housing Affordable Housing unit, he or she must be a Kenyan citizen who is 18 years old and holds an identity card.

He or she shall make an application to the relevant agency/committee and his or her application shall be accompanied by proof of at least 10 percent of the value of the affordable housing unit.

He will be required to provide a copy of the national ID, a copy of the KRA PIN certificate and any other information to be determined by the relevant agency.

"In the determination of the allocation of an affordable housing unit, the agency shall give preference to marginalized persons, vulnerable groups, youth, women and persons with disabilities," states the Bill.

An eligible person can be considered for a loan for the purchase of the housing unit and upon receipt of the loan, an agency shall evaluate the application to ensure compliance.

Moreover, an eligible person may make voluntary savings to raise a deposit towards the allocation of an affordable housing unit.