Posted 2/4/2024, 4:00:00 AM
Court Halts Housing Levy Funding Midway to Target; Projects and Budget at Risk
- The government collected Sh26.8 billion from the housing development levy in the 6 months to December 2023, against a target of Sh63.2 billion for the full financial year. This is a performance rate of about 85%.
- The High Court declared the levy unconstitutional in November 2023, but allowed continued collection until January 2024. The Court of Appeal has now stopped further collection.
- There are 18 affordable housing projects ongoing with a total of 88,584 units. The levy funding is meant to support such projects.
- The Parliamentary Budget Office notes legal risks for government due to contractual obligations already entered into, if the levy remains nullified.
- The PBO has identified gaps in the proposed Affordable Housing Bill 2023 related to alignment with public finance law and eligibility criteria for housing applicants.