In Summary

  • Eligibility Criteria for House Allocation
  • Regulation of ownership and sale of units 
  • Oversight and accountability measures

The New Housing Law  introduces a 15% Affordable Housing Relief for employees, as stipulated under Section 30A of the Income Tax Act.

The relief is capped at Ksh9,000 per month or Ksh 108,000 per annum, offering financial respite to eligible residents who are actively engaged in affordable housing schemes.

READ also:Pro-Affordable Housing Project Demonstrators Tear-gased

Criteria for House Allocation

Prospective applicants, seeking house allocations must meet specific criteria as it is  in the Act.

Providing proof of deposit, possessing a valid KRA PIN along with a tax compliance certificate, and submitting copies of  national identity card or incorporation certificate for corporate entities.

Savings and contributions is to be channeled through Boma Yangu after application, which requires a Sh200 fee.

Opting for the mortgage route to construct housing units in rural areas, both voluntary savings and the land on which construction takes place is to serve as collateral.

Read Also: Varsities Students’ Leaders Urges Ruto to Ignore Opposition,Implement the Affordable Housing Programme

Ownership And Sale Of Units 

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Ownership of affordable housing units will be regulated by the Affordable Housing Board, with stringent measures in place to prevent unauthorized sales.

The Board mandate for any transfer of ownership will ensure transparency and accountability in property transactions.

The Act categorizes affordable housing units into tiers based on income levels.

These tiers include, social housing for low-income earners below Sh20,000, affordable housing for individuals with monthly incomes between Sh21,000 and Sh149,000,and affordable middle-class housing for those earning above Sh150,000.

Read Also: The Affordable Housing Act, 2024.

Oversight and Accountability

Section 15 of the Act provides that the board shall submit the annual investment programme to the Cabinet Secretary who will then submit the programme to Parliament.

The penalty for misappropriation of Affordable Housing Funds has been set at Sh20 million fine or imprisonment of a term not exceeding ten years, or both has been retained.

Devolved units placed in County Rural and Urban Affordable Housing Committees in each county.

The mandate is to be, in consultation with the board, developing a framework for the attainment of affordable housing in the county.

Allocation of land held by the county government(s) towards affordable housing, has to go through public participation.


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