Affordable Housing Bill, 2023.

REPUBLICOFKENYA

PARLIAMENT

NATIONALASSEMBLYBILLS (Bill No.75 of2023)

THE AFFORDABLE HOUSING BILL, 2023

(A Bill published in the Kenya Gazette Supplement No. 236 of 4u December,2023 and passed by the National Assembly, with amendments, on 21st February, 2024)

THEAFFORDABLEHOUSINGBILL,2023 ARRANGEMENTOFCLAUSES

Clause

PARTI-PRELIMINARY

• 1—Short title.

• 2—Interpretation.

• 3—Objects and guiding principles.

PARTII-IMPOSITIONOFAFFORDABLE HOUSINGLEVY

• 4—Imposition of Levy.

• 5—Obligation of an employer.

• 6—Exemption from imposition of the Levy.

• 7—Default on payment of amount of Levy.

PARTIII-ESTABLISHMENTAND MANAGEMENTOFTHEAFFORDABLEHOUSING FUND

• 8—EstablishmentofFund.

• 9-Sources of funds.

• 10—Purpose of the Fund.

• 11—Allocationsoutof theFund.

• 12-Five-year affordable housing investment programme.

• 13-Annual investment programme

• 14—Establishment of Board.

• 15—Functions of the Board.

• 16—Qualifications for appointment.

• 17—Tenure of office.

• 18—Filling of vacancy.

• 19-Conduct of affairs andbusinessof theBoard.

• 20—CommitteesoftheBoard.

• 21—Disclosure of interest.

TheAffordableHousingBill,2023

• 22-Remuneration of Boardmembers.

• 23-ChiefExecutiveOfficeroftheBoard.

• 24-AdministratoroftheFund.

• 25—Fund not to be overdrawn.

• 26—Administrativecosts.

• 27-PowerofadministratoroftheFund to access information.

• 28-CorporationSecretary.

• 29-Staffof theBoard

• 30—Delegation of powers.

• 31—The common seal.

PARTIV-IMPLEMENTATIONOFTHEAFFORDABLE HOUSING

• 32-Allocation of land.

• 33-Agreementwithnationalgovernment agency.

• 34-Agreement for institutional housing.

• 35-Agreementwithprivateinstitutions

• 36-Agreement for financing.

• 37-Community support

PARTV-ELIGIBILITYCRITERIAANDAPPLICATION PROCEDUREFORAFFORDABLEHOUSINGUNIT

• 38—Eligibility criteria.

• 39—Application for allocation of affordable housing unit.

• 40-Off-taking of affordable housing units.

• 41—Loan interest rate.

• 42—Loan repayment.

• 43-Voluntarysavings.

PARTVI-FINANCIALPROVISIONS

44—Accounts and audit.

PARTVHI—MISCELLANEOUS-PROVISIONS

• 45-Offences.

• 46-Otheroffences

• 47—Protection from personal liability.

• 48—Regulations.

• 49-Consequentialamendment andtransition.

FIRSTSCHEDULE-CONDUCTOFAFFAIRSANDBUSINESSOF THE.BOARD

SECONDSCHEDULE-CONSEQUENTIALAMENDMENTS

THIRDSCHEDULE-LISTOFAGENCIESIMPLEMENTINGTHE AFFORDABLEHOUSINGPROGRAMMEANDPROJECTS

THEAFFORDABLEHOUSINGBILL,2023

ABill for

-AN-ACT-of-Parliament-to-give-effect-to-Artiele 43(1)(b) of the Constitution; to provide a framework for developmentandaccesstoaffordablehousing and institutional housing;and for connected purposes

ENACTED by Parliament of Kenya, as follows--

PARTIPRELIMINARY

1.ThisAct may be cited as the Affordable Housing

Shont title.

Act,2024andshall come intooperationasfollows-

• (a) on the date of assent, section 4 and 5;

• (b) all other sections, on such date as may be prescribed by the Cabinet Secretary by notice intheGazette.

• 2.(1) In this Act, unless the context otherwise Interpretation.

requires

"agency” means an institution allocated monies for affordablehousingunder section11;

"administrator of the Fund" means the person designated as the administrator of theFund under section24;

“affordable housing”means housing that is adequate and costs not more than thirty percent of the income of a person per month to rent or acquire;

"affordable housing scheme”means the construction of affordable housingunits including such other social amenity,infrastructure or services and the acquisition, laying:out,subdivision and the development of land comprisedwithin the area of thescheme necessaryforsocial welfareand.trading;

"Board" means the Affordable Housing Board established under section14;

"Cabinet Secretary"” means the Cabinet Secretary for the timebeingresponsibleformattersrelatingto affordable housing;

| "Chief Executive-Officer-means-thc person appointed as such under section 23; "collector”means the Commissioner-General of the | Cap.469. | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------| | KenyaRevenueAuthority,appointedundersection 1i(i) of theKenyaRevenue AuthorityAct; | | | "Fund"1 meanstheAffordable Housing Fund established under section8; | | | "institutional housing”means:housing that is adequate and affordablefor publicinstitutions such as universities, colleges, police, defence forces, government pool housing and-prisons;and | | | "Levy” means the Affordable Housing Levy imposed under section 4. | | | (2) For the purposes of this Act, “"affordable housing unit"'refers to--- (a)a social housing unit with aplinth area of at least eighteensquaremetresandtargetedtoaperson whosemonthlyincome-is-belowtwentythousand | | | shillings; (b) an affordable housing unit with a plinth area of at whosemonthlyincomeisbetweentwentythousand and one hundred and forty-nine thousand shillings; or | | | (c)affordable middle class housing unit with a plinth area of atleast eighty squaremetresformiddleto high income housing targeted at persons whose monthlyincomeis overonehundred andforty-nine thousand shillings. | | | 3.(1) The objects of this Act shall be to- | | | (a) give effect to Article 43(1)(b) of the Constitution on the right to accessible and adequatehousing and to reasonable standards of sanitation; (b) imposealevytofacilitatethe.provisionof affordablehousingandinstitutionalhousing;-and | | | Objects and | | | | guiding principles. |

• (c)providealegal frameworkfortheimplementation of the affordable housingprogrammes and projects and institutional housing.

• (2)The-implementationofthis-Actshallbe-guided-by=--

• (a) the national values andprinciples of governance under Article 10(2)(b) of the Constitution;

• (b)theprinciples of public finance under Article 201 of the Constitution;and

• ()thevaluesandprinciples ofpublic serviceunder Article232of theConstitution.

PARTII-IMPOSITIONOFAFFORDABLE HOUSINGLEVY

• 4.(1) There is imposed a levy known as the Affordable Housing Levy.

Impositionof Levy.

• (2) The Levy shall be at the rate of one point five percent of--

• (a)the gross salary-of an-employee; or

• (b) thegross income of a person received or accrued whichisnotsubject to theLevyunderparagraph (a).

• (3)The Levy shall be payable to the collector, for remittance into the Fund,not later than the ninth working day after the end of the month in which the gross salary was due or gross income wasreceived or accrued.

Obligationof an employer.

• 5.(1) An employer shall-

• (a)deduct and remit the amount referred toin section 4(2)(a) from the gross salary of an employee; and

• ,(b)remit an amount equivalent to the amount deducted under section 4(2)(a), to the collector.

• (2) Without prejudice to the generality of section 6,any business or companywhich complieswith theprovisions of section'5shall not beliable topay thelevyundersection4(2) (b).

6.The Cabinet Secretary for the time being

Exemptionfrom impositionof the

Levy.

recommendationofthe-CabinetSecretary,provide,bynotice

in the Gazette,that-

• (a) any income or class of income; or

• (b) any person or category of persons,

shall be exempt from the application of section 4 to the extentspecifiedinthenotice.

• 7.The levy shall be a debt dueto the Government and shall berecoverablein accordancewith theTaxProcedures Act,2015

Debtrecovery..

No.29 of2015.

PARTII-ESTABLISHMENTAND MANAGEMENTOFTHEAFFORDABLEHOUSING FUND

• 8.There is established a fund to be known as the Affordable Housing Fund which shall be vested in, and managed by,theBoard.

Establishment of Fund.

• 9.(1)-There shall be paid into-the Fund--

Sources of funds.

• (a)monies deducted orpayable as the Levy under this Act;

• (b) monies appropriated by the National Assembly for the purposes of theFund;

• (c) gifts, grants or donations;

• (d) voluntary contributions made under section 38;

• (e)income from investments made by the Fund; and

• (f)income accruing to the Fund in the course of the performance of itsfunctions under any written law.

• (2) Without prejudice to the generality of subsection 1(e)and(f),all of theproceedsof sale,rent,and interest shall be paid into the Fund.

• 10.(l) The purpose of the Fund shall be to provide funds for the development of affordable housing, institutional housing andassociated social andphysical infrastructure.

Purpose of the Fund.

• (2) Withoutprejudice to thegeneralityof subsection

(1), the Fund shall--

• (a)facilitatetheprovision of fundsforaffordable housing and affordablehousing schemes in the promotion of home ownership;

• (b)-provide-low-interest-loans-or-lowmonthly-payment- home loans, where applicable for the acquisition of affordablehousingunitswithinthe approved affordablehousingschemes;

• (c) facilitate the development of affordable housing schemes;

• (d) facilitate developmentof institutionalhousing units,

• (e)develop longtermfinancesolutionsforthe development andoff-takeof affordablehousing;

• (fprovide funds for maintenance of anyland or building,estate or interest therein,for any of the purposes of theFund; and

• (g)fund anyother activities incidental to the furtherance of the objects of theFund.

• 11.(1) The Board may allocate outof the Fund,monies for the--

Allocationsout oftheFund.

• (a) development and off-take of affordable housing programmes and projects;

• (b) development of institutional housing;and

• (c)social and physical infrastructure.

• (2) The monies may be allocated subject to the annual investment programme under section 13and the provisions ofPartIV to the agenciesset out in theThirdSchedule.

• (3)The monies may beallocatedtocounty governmentsinaccordance with thePublicFinance Management Act, 2012 and on such'conditions as may be prescribed by the Cabinet Secretary for the time being responsible for the National Treasury.

• (4) Despite the provisions of subsection (2),the Board

shall allocateoutoftheFund-

• (a)up-to-twopereent-ofthemonies-to-thecoflectorfor the collectionoftheLevy as maybe approvedby the Cabinet Secretary for the time being responsible\_for\_the\_National\_Treasury\_on.\_the recommendation ofthe CabinetSecretary;and

• (b)uptotwopercentofthemoniestotheBoardfor theadministration oftheFund as maybe approved by the Cabinet Secretary for the time being responsible for theNational Treasury on the recommendation.ofthe CabinetSecretary.

• (5)TheThird-Schedule-maybe-amended-by-notiee-in theGazette.

• 12.(1) The Bcard shall develop a five-year affordable housing investment programme every five years.

Five-year 'affordable housing investment programme.

• (2) The Board shall submit the affordable housing investment-programmereferred-to-in subsection-(1)-to-the CabinetSecretary andthe CabinetSecretaryfor thetime being responsible for the National Treasury for onward transmission to the Cabinet for approval.

• (3) Upon approval ofthe affordable housing investment programme by the Cabinet, the Cabinet Secretary shall submit the approvedaffordablehousinginvestment programme to the National Assembly.

• 13.(1) The Board shall prepare an annual investment programme drawn from the five-year affordable housing investmentprogrammewhich shallinclude-

Annual investment programme.

• (a) the proposed affordable housing projects;

• (b) the proposed institutional housing projects;

• (c) the proposed allocation of monies.out of the Fund;

• (d) the proposed implementing agencies as set out in theThird Schedule.

• (2) The Board shall submit the annual investment programme\_referred\_to\_in\_subsection\_(l)\_to\_\_theCabinet

Secretary.

• (3)The CabinetSecretaryshallsubmit theannual investmentprogramme totheNationalAssemblyfor approval before disbursing funds out of the Fund.

• 14.(i) Thereisestablished aboard tobeknown as the Affordable HousingBoard.

Estabtishmentot Board.

• (2) The Board is abody corporate with perpetual succession and a common seal and shall,in its corporate name, be capable of--

• (a) suing and being sued;

• (b) taking, purchasing or otherwise acquiring, holding, charging or disposing of movable and immovable property; and

• (c)doing or performing all other things or acts for the furtherance of theprovisions of thisActwhich maybelawfullydoneorperformedby abody corporate.

• (3) The Board shall consist of the following-

• (a)a non-executiveChairperson appointed by the President;

• (b) thePrincipal Secretary to the National Treasury or his representative designated in writing;

• (c)thePrincipal Secretary of theStateDepartment for thetimebeingresponsibleformattersrelating toaffordablehousing orhisrepresentative designated in writing;

• (d) three other persons who shall be appointed by the CabinetSecretary,ofwhom—

• (i) one shall be a nomineeof theCouncil of County Governors;

• (11) oneshallbe a nomineeof theCentral Organization of Trade.Union;and

• (i)one shall be a nominee of theFederation of KenyaEmployers;

• appointed,through a competitive process,by the Cabinet Secretaryandwhoshall possess

qualificationsinbuiltenvironment,financeor law; and

• (f)the Chief Executive Officer,who shall have no right tovote at a meeting of theBoard.

• (4) In nominating a person to be a member under subsection (3)(d),thenominatingbodies shall present the names of threepersonsto the Cabinet' Secretaryfrom amongst whom one shall be appointed.

• (5) Inappointing.the members ofthe Board,the Cabinet

Secretaryshall-

• (a) ensure that not more thantwo-thirds of the members are of the same gender;

• (b) take into account regional balance;

• (c)consider special and marginalized groups including—youth, women.--and—personswith disability.

• (6)Themembersof theBoardreferred toinsubsection (3), (a), (d) and (e) shall be appointed at different times so that therespective expirydates of their termsofofficeshall be atdifferenttimes.

• 15.(l) The object andpurpose for which the Board is establishedistooverseethedevelopmentofaffordable housing.institutional housing and associated social and physical infrastructure inKenya

Functions of the Board.

• (2)Without prejudiceto thegenerality of subsection (1),the Board shall-

• (a)co-ordinate the optimal utilisation of theFund in the implementation of programmes andprojects relatingto thedevelopmentofaffordablehousing and institutional housing and associated social and physical infrastructure;

• (b) seektoachieveoptimalefficiency’andcost effectivenessinthedevelopmentof affordable housing programmes and projects funded by the Fund;

• (c)based ona five-year affordable housinginvestment programmeand annualaffordable housing investment programme,determine the allocation of financialresources.required\_forthe.developmentof the affordable housing projects, institutional housing and associatedsocial and physical infrastructure;

• (d) manage the Fund and allocate monies in accordance with section11;

• (e)monitorand-evaluate,by-means-of technical, financial and performance audits,the delivery of goods,works and servicesfunded by theFund;

• (f) in implementing paragraph (e), pay due regard to publicprocurement and disposalregulations and additionalguidelinesissuedorapprovedbythe CabinetSecretaryforthe time beingresponsiblefor the National Treasury;

• (g)identify,quantify and recommend to the Cabinet Secretary-suchotherpotential-sourcesofrevenue-as maybe available to theFundfor the development, of affordablehousingprogrammes andprojects and associated social and physical infrastructure for considerationbytheCabinetSecretarytothe National Treasury;

• (h) approve the opening and closing of bank accounts of the Fund by the administrator of the Fund;

• approve estimatesofrevenue and expenditure of the Fund for each financial year; and

• perform such other duties asmaybe assignedby the Cabinet Secretary in writing.

Qualificationsfor appointment.

16. (1) A person qualifies to be appointed as the Chairperson of the Board if that person-

• (a) holds a degree from a university recognized in Kenya;

• (b)has experience in matters relating tohousing,built environment,banking,finance orlaw.

• (2)-Aperson-qualifies-to-be appointed-as-a-member of the Board, other than as an ex-officio member, if the person-

• (a)meets the requirementsof Chapter Six of the Constitution;

• (b)has not been convicted of a criminal offence which attractsimprisonmentforatermnotexceedingsix months;

• (c)hasnot been adjudgedbankrupt or entered into a composition or arrangementwith the creditors of theperson;and

• (d)isnot disqualified under any otherwritten lawfrom appointment assuch.

17. (1) The Chairperson and the members of the Board, other than the ex-officio members,shall hold office for a term of threeyears andmaybe eligibleforre-appointment toafurther and-finaltermof three-years.

Tenure of office.

• (2)Despite the provisions-of-subsection(1),a member of the Board,other than an ex-officio member, may be removed from office if that person—

• (a)has been absent from three consecutive meetings of theBoard dwithoutjustifiablecauseorthe permission of the Chairperson;

• (b) is adjudged bankrupt or enters into a composition or arrangement with the creditors of the person;

• (c)is convicted of an offence involving dishonesty or corruption;

• (d) becomes incapable of carrying out the functions of his or her office, either arising from an infirmity of mind or body;

• (e) violates Chapter Six of the Constitution; or

• (ffailstodisclose anyinterest ina matter under considerationbytheBoard asprovidedforunder section 19(1).

• (3)A member of the Board, other than an ex-officio

member,shallceasetobeamemberoftheBoardifthat

| | member resignsfrom office by a notice in writing addressed | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------| | to the appointing authority. | Filling of vacancy. | | 18.Whenever the office of the Chairperson or a member,othierthanr-anex-offtciomember,becomesvacant before the expiry of the term of office,the appointing authority shall,on therecommendation of thenominating body, where applicable, appoint a person who holds a similar qualification tofill thevacantpositionfor theremainderof the term. | | | 19.(1) The conduct of affairs and business of the Board shallbeinaccordancewiththeSchedule. | Conduct ofaffairs and business of the Board. | | (2) Subject to subsection(1),theBoard may regulate its ownprocedures. | | | 20.(1) The Board may establish such committees consistingofsuchmembersoftheBoardtodealwithsuch matters as theBoard may specify. | Committeesof the Board. | | (2) The Board may co-opt persons who are not membersoftheBoardtocommitteesestablishedunder subsection(1)for aparticularreasonandsuchpersonsshall servein suchcommitteesfor suchperiod as theBoardmay determine. 21.(1)IfamemberoftheBoardispresentatameeting of theBoard or any committee of theBoard at which any | Disclosure of interest. | | matteristhesubjectofconsideration andinwhichmatterthe memberorthedependantsof thememberaredirectlyor indirectly interested in a private capacity,the member shall, as soon as practicable, after the commencement of the meeting,disclose such interest and shall not,unless the Board otherwise directs,take part in any consideration or discussion, or vote on any question relating on such matter. (2)A disclosure of interest made under this section shall-berecorded in theminutes of the meeting atwhich it is made. | | | (3)Failure to disclose suchinterest shall lead to the disqualificationof themember from holding office as a member.' | | | 22.TheChairperson and themembersof theBoard shall be paid such sitting allowances or other remuneration for-expenses-asrecommendedbytheSalariesand Remuneration Commission. | Remuneration of Boardmembcrs. |

23.(1) There shall be a Chief .Executive Officer of-theChief Executive Boardwhoshallbecompetitivelyrecruited and appointedby Officerofthe the Board,in consultation with the Cabinet Secretary,on such.terms-andconditions-of.service-as\_shallbe.specifiedin theinstrumentof appointmentorotherwiseinwritingfrom time to time.

Board.

• (2) A person qualifies to be appointed as the Chief Executive Officer if that person——

• (a) holds a degree from a university recognized in -Kenya;

• (b) has at least ten years’experience in a managerial capacity in built environment, finance, or law."

• 24.(1) The Chief Executive Officer shall be the Administratorof administratorof'theFund. the Fund.

• (2) The administrator of theFund shall-

• (a)supervise-and-control the day-to-day-administration of the Fund;

• (b) prepare the annual work plan for the Fund for approval by theBoard;

• (c)open and operate the accounts of the Fund with the approval of the Board and the National Treasury;

• (d) prepareestimatesof annual revenueand expenditureof theFund andsubmit to theBoard for approval;

• (e) implement policies approved by the Board for the attainment of the objects of theFund;

• advise the Boardon matters relating tothe administration of theFund;

• (g) co-ordinate the monitoring gandevaluationof affordablehousingprojects and programmes financed from the Fund;

• (h)keep books of accounts and other books and records inrelationtothe Fundofallactivitiesand undertakingsfinanced by theFund;

• (i)-be-the custodian of the assets, property, and equipment of the Fund;

• (j)establish-proper-systems-of-internal-control and managementin accordancewithprovisionsof the relevantlaws;

• withdrawalsout of theFund;

• (l)ensure that money held in the Fund,including any earnings or accrualsis spent only for the purpose forwhichtheFundisestablished.

• (m)prepare,inrespect ofeachfinancial year andwithin threemonthsafter the end thereof,a statement of accounts-relating-to-theFundandshowingthe expenditureincurredfromtheFundinaccordance with thePublicAuditAct,2015;and

No.34of2015.

• (n) undertake any other duty the Board may assign in furtherance of the objects and purpose of the Fund.

Fundnot to be overdrawn.

• 25.TheadministratoroftheFundshallensurethatno bank accounts of-the-Fund areoverdrawn.

• 26.The administrative costs-of-the Fund shall notAdministrative costs. exceedtwopercentofthelatestauditedfinancialstatement of theFund.

Powerof the administratorof theFund toaccess information.

• 27.Theadministratorof theFundmayaccessany programme and project related data that the Administrator considers necessaryfor theperformance oftheirfunctions under thisAct.

Corporation Secretary.

• 28.(1) There shall be a Corporation Secretary to the Board who shall becompetitivelyrecruited and appointed by the Board.

• (2) A person shall be qualified to be appointed as the CorporationSecretary if that person—

• (a) holds a degree from a university recognised in Kenya;.

• (b) is a Certified PublicSecretary and a member of the Institute.of CertifiedPublicSecretariesofKenyain good standing;

• services-of-a-certified-public-secretary;and

• (d)meetstherequirements of Chapter Sixof the Constitution.

• (3)The CorporationSecretaryshallberesponsibie

for——

• (a)providing guidance to the members of the Board on their duties,responsibilities and powers and how theseshouldbe exercisedin thebest interests of the Board;

• (b)-ensuring—that—the-procedures—ofthe-Board-are followed and reviewed regularly,andthat the membersof theBoard complywith written law;

• (c)assisting the Chairperson of theBoard to organise the activities of the Board,including providing information, preparing agenda, issuing notices and preparingfor meetings,conducting evaluations of theBoard and developmentprogrammes of the --Board;-

• (d)-providingsecretarial—servicestotheBoard, including ensuring that the workplan of theBoard is prepared and adhered to,circulating Board papers in advance of the meeting and keeping therecord of attendance of themeetings;

• (e) ensuring that the minutes of the meetings of the Board and committees of theBoard arepromptly prepared and circulated;

• keeping the members of theBoard abreast of and informed on current governance practice;

• (g) keeping a record of conflicts of interest declared by eachmemberoftheBoard;and

• (h) co-ordinating the governance audit process.

29. (1) The Board may appoint such members of staff - Staffofthe Board. as maybe necessaryfor theproper discharge of thefunctions of theBoard,onsuch terms and conditions of service as the Boardmaydetermine.

• (2)The staff of theBoard shallbethe-secretariat of the Fund reporting to the Chief Executive Officer.

• 30.The-Board-may,by-resolutiongenerally-or-in-any-- particular case,delegate to the administrator of theFund,an officer,employee or agent of the Board,the exercise of any of-the-powers-or-the-performance-of-any-of-its-functions- underthisActorunderanyotherwrittenlaw.

Delegation.of. powers.

• 31.(1) Thecommonsealof theBoard shall bekeptin such custody as theBoard may direct and shall not be used exceptby the orderof theBoard.

The common seal.

• (2)ThecommonsealoftheBoardshall,whenaffixed toadocumentandisdulyauthenticated,bejudiciallyand officiallynoticed,and-unless-and-untilthe-contrary-is proved,any necessary order or authorisation by theBoard underthissectionshallbepresumed tohavebeen dulygiven.

PARTIV-IMPLEMENTATION OFTHE AFFORDABLEHOUSING

• 32.The provisions of the Land Act, 2012 shall apply withregard-to-allocationofnationalor-countygovernment land.

Allocation of land.

• 33.(l) The Fund may appoint a national government agency to develop affordable housing units andthe associated social andphysicalinfrastructure.

Agreement with national govermmcnt agency.

• (2) Subject to the Public Finance Management Act, 2012,theFundmaydisbursesuchmonies tothenational government agency for the performance of the functions under sub-section(1).

34. The Fund may enter into an agreement with a public institution for-

Agreementfor institutional housing.

• (a) the development of institutional housing units; and

• (b) the repayment of the monies paid out of theFund for thedevelopmentof theinstitutionalhousing units.

• 35.TheFundmay enter intoan agreement with a private—institution-to-develop-and-construet-afferdable housing units and the associated social and physical infrastructure.

Agreement with private

institutions.

• 36.(1) TheFundmay enterinto an agreeiment with any approved institution or mortgage scheme to provide financingfor the off-take of affordable housing units.

Agreementfor financing.

• (2) Subject to the Public Finance management Act, 2012, the Fund may disburse such monies to the approved institution as maybenecessaryfor theperformance of the ·function under sub-section (1).

37. In the development of affordable housing units, the Board.shall--

Community support.

• (a)asfar aspossible ensure locally availablematerials are used;

• (b)ensure labour issourcedfromthe local communities;

• (c)where a project is near a university or technical vocationalinstitutionensurethat thestudentsget internshipsorpracticalexperiencefromtheprojects where affordable-housingprojects are carried-out.

PARTV-ELIGIBILITYCRITERIAAND APPLICATIONPROCEDUREFORAFFORDABLE HOUSINGUNIT

• 38.A person or body corporate shall be eligible to be allocatedanaffordablehousing unitsubjecttothe requirementsundersection31.

Eligibility criteria.

• 39.(1) A person who meets the criteria set out under section30 and desires tobe allocated an affordable housing unit, shall make an application to theBoard in the specified manner.

Applicationfor allocationof affordable housing unit.

• (2) An application made under subsection (1) shall be accompaniedby-

• (a)proof of requisite deposit asmaybeprescribed by the CabinetSecretary;

• (b)a copyof thenationalidentitycardor such other form ofidentification asmaybe prescribed by the CabinetSecretary;

• (c) copy-of-incorporation-certificate in the case of a body corporate;

• (d)a copy of Kenya Revenue Authoritypersonal identification numbercertificate and tax compliance certificate;and

• (e)suchotherinforimation asmaybedetermined bythe Board.

• (3)Indeterminingtheallocationofanaffordable housing gunit under this section,the Board’ shall give preference to marginalised persons,vulnerable groups, youth, women and persons with disabilities.

• 40.TheBoardmayoff-take affordablehousingunits underanaffordablehousingschemeif theaffordable housing scheme--

Off-taking of housing units. affordable-

• (a)hasbeen approvedby theBoard;

• (b)meets policy and statutory requirements;and

• (c)meetsanyothercriteriaorconditionssetbythe Board.

• 41.Theinterestrateoradministrationfeeforaloan issuedunder thisAct,where applicable,shall bepayableon areducingbalance atsuchrateasmaybeprescribedbythe Cabinet Secretary.

Loan interestrate.

• 42.(1) An eligible person may make voluntary savings with theFundforpurposesofraising adeposit towards the allocationof an affordablehousingunit.

Voluntary savings.

• (2) An administrator of the Fund shall open separate bank account where voluntary savings shall be kept and any interest arisingfrominvestmentofvoluntarysavingsshall be creditedto this account.

• (3) The administrator of the Fund shall issue an account number to eachperson making a voluntary saving.

• (4) A person who has made a voluntary saving and has notbeen allocated anaffordablehousingunit anddesires to withdrawhis or her savings shall give a ninety-days’notice to the agency for refund with accrued interest, if any.

PARTVI-FINANCIALPROVISIONS

43.(1) The administrator of the Fund shall cause to be·Accounts and

audit.

kept proper books and records of account of the income, expenditure and assets of theFund.

• (2)Within a period of three months from the end of each financial year,the administrator of the Fund shall submittotheAuditor-GeneraltheaccountsoftheFund togetherwith-

• (a)a statement of theincome and expenditure of the Fund during the year; and

• (b)a statement of the assets and liabilitiesof theFund onthelastdayof thatyear.

• (3)The-accounts-oftheFund-shallbeauditedand reported\_upon in accordance\_with\_thePublicAudit-Act, 2015.

PARTVII-MISCELLANEOUSPROVISIONS

• 44.(l) A person commits an offence if the person misappropriated any funds or assets of theFund,or assists or causes any person to misappropriate or apply the funds otherwise than in the mannerprovided in this Act.

Misappropriation offundsof the Fund.

• (2) A person who contravenes the provisions of subsection(1)shall beliable,on conviction

• (a) to a fine not exceeding ten million shillings or imprisonment of a term notexceeding fiveyears,or to both; and

• (b) an additional mandatory fine if, as a result of the conduct that constituted the offence, the person receivedaquantifiablebenefitoranyotherperson suffered aquantifiableloss.

• (3) The mandatory fine referred to in subsection (2)(b) shallbedetermined asfollows-

• (a)the mandatory fine shall be equal to two times the amountofthe·benefitor·lossdescribedin subsection (2)(b);

• (b)if the conduct that constituted the offence resulted inbothabenefitandlossdescribedinsubsection (2)(b), the mandatory fine shall be equal to two times the sumof the amountof thebenefit andthe amount of the loss.

• 45.(l) A person commits an offence if the person--

Otheroffences.

• (a)fails to give information or gives inaccurate or misleadinginforimation orfalsifiesinformation

ormisrepresentsinforimationrequiredunder this Act;

• (b) having possession of, or control over, or access toanydocuments,information,returnsorforms relating to applications or granting ofloans, communicatesanythingcontained therein-

• (i)to.any person other than a person to whom .heisauthorized bytheBoardto communicate it; or

• (i)otherwisethanforthe purposesofthisAct.

• (2)Apersonwhocontravenes theprovisionsof subsection(1)shall beliable,on conviction toa fine not exceeding tenmillionshillingsorimprisonmentofa term notexceedingfiveyears,ortoboth.

46. No matter or thing done by any person under this Act shall,if the matter or thing is done in goodfaith and in accordance with the law,render thatperson personallyliable to any action,claim or demandwhatsoever.

Protectionfrom personal liability.

• 47.(1)TheCabinet Secretary may,in consultationwith theBoard,makeRegulationsforbettercarryingintoeffect theprovisionsof thisAct.

Regulations.

• (2)Without prejudice to thegenerality of subsection (1), the Regulations made under this section may prescribe-—-

• (a) the criteria for exemptions granted under section6;

• (b) requisite deposit for the housing under section 39(2);

• (t) identification documents under section 39;

• (d) regulations under Part IV;

• (e) the criteria for change of affordable housing unit;

• (f) the provisions on voluntary savings;

• (g)theprovisionsrelating to off-takeof affordable housing-units;

• (h) theinciusivity and diversitywithin affordable housing schemes; and

• (i)the application and integration of technology- based platformsinthe administrationand management of affordable housing schemes.

• 48.(l) The Acts specified in theFirst column of the second schedule are amended in the manner specified in the second column.

Consequential amendment and transition.

• (2) Any payment made or action taken under the sections repealed under subsection(l) shall be deemed to havebeenpaid or taken under thisAct.

• (3)Any-commitment-or-obligation-on-the-National government on affordable housing which have arisen or madeinaccordancewithanActofParliamentshallbe deemed tobeacommitmentor obligationmadeunder this Act.

• 49.(1) Allregulations in-force immediately theRevocation of commencement of this Act and applicable to affordableaffordable Housing housing and voluntary contributions are hereby revoked. Fund Regulations..

• (2)All monies which immediately before the commencementofthisAct,thatwereheldbytheNational Housing Corporation under the Housing Fund Regulations, 2018shallvestin theFund and shall be deposited into the Fund.

• (3) The National Housing Corporation shall account for andgive a record of all contributions made under the Housing Fund Regulations, 2018.

• (4) The administrator of the Fund shall notify the contributors and create an account for each contributor.

FIRSTSCHEDULE

(s. 17(1))

CONDUCTOEAFFAIRSANDBUSINESSOE THE BOARD

1. (1)TheBoardshallmeetnotlessthanfour times in everyfinancialyear andnot more than four months shall

Meetings.

elapse between the date of one meeting and the date of the next meeting.

• (2)The\_notice\_for ameeting\_of.the\_Board\_shall\_bein writing,and shall befor aperiodof atleast seven daysfrom the expected day of the meeting.

• (3)TheChairperson.oftheBoardshallpresideover all meetings of the Board and in the absence of the Chairperson, a person designated by members of theBoard present at a meetingshall preside.

• (4)TheChairpersonoftheBoardmay,on thewritten requestmadeby atleasthalf of themembersof theBoard andwithinseven days of therequest,convene an extraordinarymeetingof theBoard atsuch time andplace as the Chairperson may appoint.

• (5) The Board may invite anyperson to attend any of its meetings and to participate in its deliberations,but such person shall not have a vote in anydecisionof theBoard.

• 2.The quorum for the conduct of business at a meeting of theBoard shall befiftyplusone of the total membersoftheBoard.

Quorum.

• 3.Unless a unanimous decision is reached,a decision on any matter before the Board shall be by a majority of the votes of the members present and voting,and in the case of an equality ofvotes the Chairperson or person presiding shallhave acastingvote.

Decisionsof the Board.

SECONDSCHEDULE

(s. 43)

CONSEQUENTIALAMENBMENTS

ACT

SECTION

AMENDMENTS

The Employment Act (No.11 of 2007)

S.31B

Repeal

s.31C

Repeal

The Income Tax s. 15 (2) Act (Cap. 470)

Insert the following new paragraph immediately after. paragraph (g)-

(ga) expenditure incurred by apersoncarrying on a businessin-paymentof AffordableHousingLevy as provided under section 5 (b) of the AffordableHousing Act,2024

S.30A

Insert the following subsection immediately after sub-section (1)-

(1A)Aresidentindividual who proves that in a year of income,the individual paid the affordable housing levy, shallforthatyearofincome beentitledtotheaffordable housing relief.

Third Schedule, paragraph 9·

Delete the word“three”and substitutethereforwith the words one point five”

The

Kenya First Schedule

Insert the following paragraphimmediately after paragraph 14;

Revenue Act (No.2Part II

of1995)

"15.The Affordable Housing Act,2024"

THIRDSCHEDULE

(s. 11)

LISTOFAGENCIESFORIMPLEMENTINGTHEAFFORDABLE HOUSINGPROGRAMMESANDPROJECTS

• T.County governments.

• 2.National Housing Corporation.

3. The Kenya Slum Upgrading, Low-Cost Housing and Infrastructure TrustFund establishedunder theGovernment Financial Management (Kenya Slum Upgrading, Low-Cost Housing and InfrastructureTrustFund)Regulations-2006.

• 4.StateDepartment responsibleformattersrelating toaffordable housing.

• 5.National Social SecurityFund.

• 6.The private sector agencies as may be approved by the Board to support affordable housing and institutional housing.

Section31BofNo.11of2007whichit isintendedtorepeal

AffordableHousing

• 31B.(1)Notwithstanding theprovisions ofsection3(2) (a), (b), (c) and (d) of the Act, each employee and employer shall pay a monthlylevyto beknown as theAffordable Housing Levy.

Levy.

• (2) The purpose of the Affordable Housing Levy shall betoprovidefundsforthedevelopmentofaffordable housingand associatedsocial andphysical infrastructureas wellas-theprovision-ofaffordablehomefinancingto Kenyans.

• (3)TheAffordableHousing Levy shall notbe used for anyotherpurposeother thanthedevelopment of affordable housingand associatedsocial andphysicalinfrastructureas wellas theprovision of affordable home financing to Kenyans.

• (4)Themonthlylevypayablebytheemployer and employeeshall be--

• (a) one point five per centum of the employee's gross monthlysalaryfortheemployee;

• (b) one pointfive per centum of the employee's monthly gross salary for the employer.

Section31CofNo.11of2007whichit isintendedtorepeal

Obligationsof the employer.

31C.(1)Anemployershall—

• (a) deduct an employee's monthly payment from the employee's gross monthly salary;

• (b).set aside the employer's monthly payment for each employee; and

• (c).not later than nine working days after the end of the month in which the payments are due,remit an .amount tcomprising.the employeeand.the employer'spayment.

• (2)Anemployerwhofailstocomplywiththissection shallbeliabletopaymentofapenaltyequivalenttotwoper centoftheunpaidfundsforeverymonth thesame remains unpaid.

I certify that thisprinted impression is a true copy oftheBill passed by the National Assembly on the 21st February, 2024.

ClerkoftheNationalAssembly

EndorsedforpresentationtotheSenateinaccordancewiththe provisions of Standing Order 142 of the National Assembly Standing Orders.