The government has tabled a revised Affordable Housing Bill in the National Assembly, including gross income earned by non-salaried earners among ratable earnings under the proposed Act.
These changes aim to resolve illegalities pointed out by the Constitutional Court, which cited the singling out of salaried individuals as discrimination amounting to a constitutional violation in a ruling rendered on November 28.
The three-judge bench comprising Justices David Majanja, Christine Meoli, and Lawrence Mugambi argued that the law failed to conform to the principle of nondiscrimination by singling out the formal sector without justification.
“The levy against persons in formal employment to the exclusion of other non-formal income earners without justification is discriminatory, irrational, arbitrary and against the constitution,” Justice Majanja declared.
The Affordable Housing Fund will be established by the amended Bill that was submitted on Thursday.
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A board will oversee the management of funds gathered through the Affordable Housing Levy in this fund.
The Bill suggests a fine of Kes 10 million for anyone proven to have embezzled funds, with penalties for failing to release the levy up to 3% of the outstanding balance for each month that arrears is outstanding.
Additionally, the legislative draft lays out the criteria for allocating homes built under the proposed Affordable Housing Fund, giving preference to marginalized individuals.
Three categories of inexpensive housing were established under the draft: affordable market housing, affordable housing, and social housing.
