Majority Leader Ichung'wa has introduced a revised Affordable Housing Bill after the courts found the earlier bill unconstitutional.
The bill passed its first reading and wants to establish a board of directors to manage the fund.
The Housing Levy was deemed unlawful on November 28 by Justices David Majanja, Christine Meoli, and Lawrence Mugambi, and its ongoing application violated the Constitution.
However, the court allowed the government to collect the housing levy until January 10.
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Majority Leader and Kikuyu Lawmaker Kimani Ichung'wah has tabled a bill to provide a legal framework to supervise the Affordable Housing Levy in what appears to be a race against time.
The law maintains the 1.5 percent deduction from employees' salaries and an extra 1.5 percent deduction from employers for each employee on their payroll.
The three-judge panel had voiced concerns about the fund's administration. The measure now states that the funds collected will not be deposited in the consolidated fund and will only be used to build affordable housing.
The fund also creates a board of directors, which will include PSs from the Treasury and Housing departments and nominees from the Council of Governors (CoG), COTU, and the Federation of Kenya Employers.
The measure also specifies who is eligible for which types of residences. Those earning less than Ksh.20,000 would be assigned residences between 18 to 30 square meters, while those earning up to Ksh.149,000 would be assigned houses twice the size.
Furthermore, the bill recommends that 30% of the housing levy be directed to the National Housing Corporation, 30% to slum rehabilitation, and 36% to affordable housing.
