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President Ruto announced a 3% impose for affordable housing on April 29. Many people have applauded this action because they perceive it as a step in the right direction toward solving the nation’s housing situation.

Employees who make more than Ksh. 50,000 per month will be subject to the levy. Employers will also be required to make a matching contribution. The National Housing Development Fund will be given the money gathered. It will be utilized to build affordable housing around the nation.

The Big 4 Agenda of the government, which aspires to deliver cheap housing, universal healthcare, manufacturing, and food security, includes this effort. By 2022, 500,000 affordable housing units are to be built, according to the agenda’s affordable housing component.

There has been a long-standing housing crisis in the nation, with many individuals unable to find adequate, cheap accommodation. The majority of Kenyans reside in slums or informal settlements. The country is believed to have a 2 million unit housing deficit.

A step toward resolving the housing crisis is the 3% tax on affordable homes. Many Kenyans who currently live in deplorable conditions will be able to afford adequate housing. Thanks to the construction of affordable housing units made possible by the cash raised.

The construction industry, which has been severely impacted by the COVID-19 outbreak, would benefit from this initiative as well. Affordable housing development will provide employment and boost the economy.

Thoughts have been expressed on how this levy will be applied. Some have questioned whether the cash raised will be managed properly. This is out of concern that they might be misappropriated or embezzled.

In conclusion, the 3% tax on affordable housing is a step in the right direction toward solving the nation’s housing crisis. Many Kenyans who currently live in deplorable conditions will be able to afford adequate housing. Thanks to the construction of affordable housing units made possible by the cash raised.