Parliament in Session on November 9, 2023. IMAGE FILE / COURTESY
In Summary:
1) The National Assembly Joint Committee on Housing and Finance suggests significant revisions to the Affordable Housing Bill, including the removal of the 10% deposit requirement.
2) Proposed changes encompass reducing the time frame for deposit refunds, introducing fair house allocation methods, involving students in housing construction through internships, and integrating students into the housing allocation process.
Nairobi, Feb 15 (TopNews) – The National Assembly Joint Committee on Housing and Finance has proposed several amendments to the Affordable Housing Bill in response to concerns voiced by Kenyans. One key adjustment entails eliminating the mandatory 10% deposit requirement, which many feared would impede home ownership.
1) House Allocation:
To ensure equitable distribution, the Committee suggests adopting a one-house per KRA pin model to prevent potential exploitation by the wealthy. Stakeholders highlighted the need to delete clauses facilitating unfair advantages for affluent individuals during public participation.
“On clause 33, stakeholders suggested removing the entire clause to address worries about potential exploitation by wealthy individuals using proxies. They argued that keeping the clause intact could create loopholes for individuals of higher economic status to unfairly exploit the system, potentially disadvantaging those in lower income brackets,” Stakeholders shared their views during the public participation process.
“The Committee acknowledged stakeholders’ worries regarding the possible abuse of the provision and advised its removal. Additionally, it proposed amending the Bill to include safeguards, such as linking one KRA pin to one house or utilizing any other distinctive identifier,” the Committee stated.
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2) Refunds for Deposits:
Under the proposed amendments, Kenyans will still save towards their house deposits, but with revised refund timelines. The Committee recommends reducing the refund processing time from 90 to 60 days to address the pressing need for housing.
3) Internship Opportunities:
Recognizing the importance of skill development, the Committee advocates for involving university and TVET students in housing construction through internships. This initiative aims to bridge the gap between academic learning and practical experience.
4) Housing for Institutions:
Following concerns raised, particularly by higher learning institutions, the Committee proposes integrating students into the affordable housing program. This includes providing housing solutions tailored to universities and other institutions.
“The Committee consented to modify the Bill to include provisions for internships intended for students in TVET institutions located in areas where affordable housing projects are underway,” stated a section of the report.
5) Rejected Proposals:
Despite public input, certain proposals were rejected by MPs. Notably, the suggestion to base deductions on basic salary rather than gross income was dismissed. Additionally, employers’ requests to be exempt from topping up employee deductions were denied.
The proposed revisions reflect a concerted effort to address housing challenges while ensuring fairness and inclusivity in the implementation of the Ruto Housing Bill.
Stakeholders’ concerns have been taken into account, signaling a commitment to improving access to affordable housing for all Kenyans.