NAIROBI, Kenya Feb 15 – National Assembly Majority Leader Kimani Ichung’wa has commended the courts for nullifying the Finance Act housing levy, asserting that the decision has paved the way for legislation aimed at enhancing revenue collection.
In his address, while presenting the Affordable Housing Bill 2023 for the second reading, Ichung’wa outlined how the Bill’s provisions establish a mechanism to ensure contributions to the housing fund from both formal and informal sector taxpayers.
Following the High Court’s ruling, which deemed the levy discriminatory for targeting only salaried Kenyans while excluding those in the informal sector, Ichung’wa expressed gratitude to the judiciary for enabling the government to enhance revenue generation.
“I want to extend appreciation to the courts for creating an avenue for increased revenue collection. Initially targeting salaried individuals, we now have an opportunity to broaden our revenue base,” Ichung’wa.
The National Assembly Majority Leader, who had previously criticized the courts for impeding the housing levy deductions, now views the court’s decision as advantageous, anticipating the initiation of numerous projects nationwide upon the bill’s enactment.
“We are now poised to kick-start projects across all our 47 counties and 270 constituencies. I urge fellow MPs to propose suitable locations for housing projects,” he emphasized.
The Joint Parliamentary Committee, after conducting public participation across 19 counties and engaging various stakeholders in the housing sector, presented its report on Wednesday.
Although the Affordable Housing Bill, initially presented as a National Assembly Bill, must undergo Senate scrutiny for consensus, this process is expected to prolong the timelines for implementing the housing fund deductions.
Tensions arose between the National Government and devolved units regarding the Affordable Housing Program, as housing policy and planning fall under the jurisdiction of counties.
National Assembly Speaker Moses Wetangula directed that the Bill be forwarded to the Senate for deliberation, indicating an improper characterization during the bill’s drafting.
National Assembly Minority Leader Opiyo Wandayi raised concerns about the bill’s characterization, highlighting that housing policy and planning are within the purview of counties according to the Fourth Schedule.
“The house needs clarity on whether it was determined that this Bill falls outside the Senate’s jurisdiction. From my perspective, the bill’s structure clearly impacts counties. Any mischaracterization must be addressed before proceeding,” Wandayi asserted.
