HOUSING LEVY: Ongoing affordable housing project in Mukuru.Image captured on November 29, 2023. Image: X
In Summary:
- The Parliamentary Budget Office is warning that government-led affordable housing programs may not effectively reach low-income individuals.
- Despite efforts to address the housing gap, concerns persist about the allocation of funds and the clarity of implementation frameworks.
The Parliamentary Budget Office is expressing doubts about whether government-led efforts to provide affordable housing will truly assist those in need. Despite attempts to close the housing gap, questions linger about whether low-income earners, the intended beneficiaries, will receive the necessary support.
Johana Ng’eno, chair of the housing committee representing the Parliamentary Budget Office, highlighted the issue of unequal fund distribution during public discussions.
READ ALSO: Court Deals Blow to Trump’s Immunity Claims in Election Interference Case
“Yes, this was one of the concerns brought up during public participation. The worry was about the uneven allocation of funds, and it will be a topic for debate,” Ng’eno stated.
Furthermore, Ng’eno emphasized the importance of safeguarding the funds allocated for affordable housing.
“Ring-fencing of the fund, ensuring it cannot be diverted for other purposes, has been addressed in the finance act,” Ng’eno added.
Some concerns raised by members of the public include whether the housing levy has an exit clause and if the committee has managed to address issues flagged by the court as unconstitutional.
The allocation of funds has been a significant concern, with over 70% targeted towards middle and low-income earners. However, a substantial portion is directed towards housing projects for higher-income individuals, raising doubts about whether lower-income families will benefit as intended.
Additionally, there are uncertainties surrounding the utilization of funds earmarked for affordable housing, particularly regarding slum upgrades and infrastructure development. The lack of clarity at the local level exacerbates concerns about equitable resource distribution.
To address these issues, the Parliamentary Budget Office emphasizes the need for greater transparency and accountability in managing affordable housing projects. Reevaluating fund allocation strategies is crucial to ensure that those most in need can access suitable and affordable housing.
As discussions continue in Parliament, it is essential to address these concerns to ensure that the poorest and most marginalized communities receive the support they require for decent living conditions.