Affordable Housing: Govt Orders Residents In 6 Nairobi Estates To Vacate
Several old estates were identified for redevelopment to increase rental stock, avail houses for sale to citizens at affordable rates, and create job opportunities for the youth.
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The government through the Ministry of Lands, Public Works, Housing and Urban Development has given residents living in six estates in Nairobi 60 days to vacate their houses.
Housing Principal Secretary (PS) Charles Hinga in a notice dated Tuesday, February 27 indicated that several old estates were identified for redevelopment to increase rental stock, avail houses for sale to citizens at affordable rates, and create job opportunities for the youth.
"As you are aware, the Government is implementing the Affordable Housing Program (AHP), which is part of the Bottom-up Economic Transformation Agenda (BETA).
"In line with this, several Government Estates in the Eastlands area have been identified and earmarked for redevelopment," stated Hinga in part.
Housing PS Charles Hinga during a briefing at State House on May 24, 2023. /CITIZEN DIGITAL
The estates identified include Jogoo Road Phase I and II, Jamaa, Mbotela, Ahero, and Mawenzi Gardens.
To pave the way for their redevelopment, PS Hinga announced that there is a need to vacate all tenants residing in the government estates immediately.
The tenants are required to prepare and surrender the houses they occupy to the director of Estate Management in vacant possession on or before April 30, 2024. However, they will need to clear all the outstanding rent arrears, utility bills and service charges.
"Please note that tenants vacated from these estates will be accorded priority to purchase or rent a house once the redevelopment is complete," added PS Hinga.
The AHP has been billed as a programme that will solve the country's housing crisis while providing jobs to about a million people a year.
The housing pillar of the Bottom-Up Economic Transformation Agenda not only aims to improve the quality of life for people but also serves as an economic stimulus, promoting enterprise growth and job creation.
In the 2023-24 financial year, the government allocated Ksh35.2 billion towards the Housing program and also mobilised resources to support the construction of affordable housing units and social housing units.
As part of the housing budget, Ksh3.2 billion will go towards the affordable housing programme. The overall target by the President is to construct 200,000 affordable housing units annually which will create between 600,000 and one million jobs each year.
The project has suffered a series of setbacks, the latest being the Court of Appeal making a significant ruling that stopped the government from collecting the controversial Affordable Housing Levy, which was declared unconstitutional in December 2023.
The Kenya Revenue Authority (KRA) sought guidance from Attorney General Justin Muturi regarding the government's position on the matter, to which he responded on February 21, shedding light on the legal intricacies surrounding the housing levy.
"The upshot of this is that there is no legal basis on which the Housing Levy as provided in section 84 of the Finance Act, can be implemented," the AG wrote in a letter to KRA.
Crucially, the Attorney General emphasized that as of the date of the Court of Appeal's pronouncement, January 26, 2024, there was no legal foundation for the levy.
This declaration has far-reaching implications for Kenyans whose salaries had already been processed and were deducted for the Housing levy in January 2024.
The Attorney General's guidance provided clarity on this matter, indicating that since collections were required to be remitted by the 9th working day of the following month, there is a window for the refund of deducted amounts.
Houses in the Kings Serenity affordable houses project in Kajiado County commissioned by President William Ruto on October 18, 2022. /STATE HOUSE KENYA
"On 26 January 2024, there is no legal provision that enables the collection and administration of the Housing Levy," the AG added.
This means that employers who had already made provision for the levy were not required to submit the same to KRA. Viral Tea understands that several companies have begun refunding employees whose salaries were deducted in January 2024.
