Sharp Daily
No Result
View All Result
Wednesday, May 14, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home News

More cuts on Kenyan’s payslips as Parliament greenlights affordable housing program

Brenda Murungi by Brenda Murungi
March 15, 2024
in News
Reading Time: 2 mins read

On Thursday 14, Parliament approved the legislation that will establish the affordable housing program. This indicates that Kenyans should prepare as the government plans to commence deducting a 1.5 per cent tax from both employers and employees as early as March.

Despite the court’s recent decision to abolish the levy, Ruto’s administration has taken steps to reinstate it through legislation, awaiting the head of state’s signature on the bill.

On January 26, an appellate court dismissed the government’s attempt to sustain the levy collection as per tax regulations. Despite opposition from MPs, pro-government legislators pushed through the Bill. Lawmakers aligned with the Azimio coalition criticized the legislation as unlawful and unconstitutional.

The approved legislation now formalizes the 1.5 percent contribution for employees, with employers required to match the same percentage.

RELATEDPOSTS

Kenya Revenue Authority (KRA) dismisses 19 staff in a renewed anti-corruption drive

February 13, 2025

National assembly clears key nominees for cabinet and commissions

January 16, 2025

Additionally, both the National Assembly and the Senate agreed on amendments, including the creation of County Affordable Housing Committees.

The soon-to-be-established Committees will be responsible for overseeing the affordable housing project. Governors will nominate a non-executive chairperson for each County Committee, who will provide advice on affordable housing matters within the county.

According to Kimani Kuria, chairman of the Finance and Planning Committee, the introduction of these Committees signifies a move to engage counties in affordable housing initiatives.

This new introduction essentially places counties at the forefront of program implementation, considering that affordable housing falls under devolved functions.

Another amendment by the Senate and which National Assembly adopted is the reduction of the cost of collecting the levy by KRA which was initially at two percent.

In the approved Bill now waiting president assent, the collection cost has been reduced to 0.5 percent of the amount collected by KRA.

In the consolidated draft, the housing units will be aimed at individuals earning between KES 20,000 and KES 140,000 per month. This initiative represents a significant step towards enabling individuals in lower income brackets to become homeowners through the project.

As part of their enhancements to the Bill, senators mandated that only the National Housing Board will be authorized to facilitate any transfer of the housing units. This implies that individuals who benefit from the affordable housing and wish to sell their units will need to obtain approval from the Board beforehand.

Under the new law, Kenyans who make voluntary saving to the scheme will be able to redeem the same if the fail to get a house. They will only need to apply for withdrawal by issuing a 90 day written notice to the National Housing Board.

“A person who has made a voluntary saving and has not been allocated an affordable housing unit may withdraw their savings by issuing ninety days’ written notice to the agency for refund with any accrued interest,” the harmonized legislation reads.

“The person may apply to the Board for approval of issuance of an affordable mortgage to develop a rural affordable housing unit.”

Previous Post

Govt announces plan to privatize KWAL and KHEAL wine agencies

Next Post

Kenya’s trade surplus with African nations surge by 95%

Brenda Murungi

Brenda Murungi

Related Posts

Agriculture And Economy
News

Lets get Kenya out of FATF list

May 9, 2025
News

The downside of Impact Investing

May 2, 2025
News

Leadership challenges at the University of Nairobi

April 24, 2025
News

Easter eggs and earnings: Growing your nest egg with CMMF

April 16, 2025
News

Geoffrey Ruku declares KES 377M net worth during CS vetting

April 15, 2025
News

Butere girls teacher accused of altering play script with political content

April 14, 2025

LATEST STORIES

Retirement planning for non-salaried workers with CPRBS

May 14, 2025

How AGOA and EPZs can transform Kenya’s trade

May 14, 2025

Safaricom forecasts earnings boost as Ethiopian losses shrink

May 14, 2025

Why Kenya must rebuild it’s textile legacy

May 14, 2025

Structuring private equity deals in Kenya

May 13, 2025

Money market funds: Smart saving and investing in Kenya

May 13, 2025

Kenya in May: Safari, coastline & deals you shouldn’t miss

May 13, 2025

Public Health Spending expected to grow in line with ethical development goals

May 13, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024