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{
    "id": 1373569,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1373569/?format=api",
    "text_counter": 76,
    "type": "speech",
    "speaker_name": "Kikuyu, UDA",
    "speaker_title": "Hon. Kimani Ichung’wah",
    "speaker": null,
    "content": "This is one of the areas that the courts found wanting in what was passed during the Finance Act. The courts advised on, at least, two important things: First, the law lacked a legal framework. That is what this new proposed legislation intends to do. It seeks to create that legal framework for the implementation of the affordable housing programmes and projects. Under this Act, we will have that legal framework that the courts found missing. I had a problem with that particular finding of the Court. However, I do not want to get into issues that could be subjudice . When we talk about a legal framework on implementation of a Government programme, it is important to note the Appropriations Act that we passed created that legal framework. It provided for appropriation of funds to implement Government projects, including the housing agenda. As I said, I do not want get into legalese that would be on the verge of getting into subjudice issues. We leave it to the lawyers in the Court of Appeal. The second issue that was raised by the courts was the issue of the Levy that we are creating. The second object is the imposition of a levy to facilitate the provision of affordable housing. In their words, the courts ruled that the Levy that was imposed under the Finance Act of 2023 was discriminatory and unconstitutional. This was in the sense that this Levy was only imposed on salaried people. In this new law, we have made it possible for people who are not salaried to contribute. I was impressed to see very patriotic Kenyans coming out before the Committee saying that they not only want to be beneficiaries of the houses that will be built, but they also want to be contributors to the Fund. They want to pay their fair share, just like those salaried people. We must continue to encourage these very patriotic Kenyans who want to contribute to this Fund. For those who cared to go through the Committee's Report, you will note that Clause 4 provides for the imposition of the affordable Housing Levy at the rate of 1.5 per cent of the gross salary of an employee or gross income of a person. A legitimate person. It could be an individual, a business entity or company. There existed a lacuna in Clause 4 of the Bill, where companies or employers who have already deducted and remitted a matching amount of the Levy for its employees were again subjected to pay the Levy on their own gross income. The Committee has made certain recommendations that will cure this lacuna such that if you are contributing as an employer, then you will not be levied the same on your gross income. The Committee has also provided safeguards in the amendments on whether the Levy was discriminatory if it is only levied on salaried people. The amendment that the Committee The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor"
}