Voluntary contributions new option for cheap homes

What you need to know:

  • More than 225,000 Kenyans have so far registered to participate in the initiative

  • Kenyans who opt for voluntary contributions will be required to contribute a minimum of Sh200 per month.
  • PS for Housing and Urban Development Mr Charles Hinga Mwaura said this is one way of enabling Kenyans to come together to achieve affordable housing.

Amid a protracted court battle over the contentious 1.5 per cent housing levy on all salaried Kenyans, the government has opened the option of voluntary contributions to the affordable housing scheme.

The Principal Secretary in the State Department for Housing and Urban Development, Mr Charles Hinga Mwaura, announced the activation of the voluntary contributions as the implementation of the housing levy remains stuck in court, with an injunction in place.

“The operationalisation of the voluntary contributions is a significant milestone in the implementation of the affordable housing programme, which we are very proud of,” said Mr Hinga.

This activation is a response to those Kenyans who have been urging us on and categorically stated, by registering on the Bomayangu web platform, that they want decent and affordable homes,” he added.

The Housing department says that so far, more than 225,000 Kenyans have registered to participate in the affordable housing programme, one of the four pillars of President Uhuru’s “Big Four Agenda”.

Kenyans who opt for voluntary contributions will be required to contribute a minimum of Sh200 per month. The PS said the voluntary contributions scheme is one way of enabling Kenyans to come together to achieve affordable housing.

“It is expected that these contributions to the Housing Fund, together with the seed capital from the National Treasury, will go a long way in providing certainty to developers and motivate capital investments for the project to ensure delivery of the affordable houses,” he said.

Cotu opposed the plan

The activation of voluntary contributions gives the programme life and kick-starts a project that has been beset by court battles.

Several organisations and individuals have also come forward to oppose the implementation of the housing levy in the matter currently before court. High Court Judge Justice Maureen Onyango, in April rejected the withdrawal of a case filed by the Central Organisation of Trade Union (Cotu) opposing the government plan.

Cotu, the Trade Union Congress of Kenya, the Consumer Federation of Kenya and the Federation of Kenyan Employers, among others, had diverse suits seeking to stop the levy, which have now been consolidated by the order of the court.