Analysis of the Key Provisions and Implications of the Affordable Housing Act, 2024


The Affordable Housing Act, 2024 was gazetted on 19 March 2024 after being signed into law by the President on the same date. The Act serves to implement constitutional mandates regarding the right to accessible and adequate housing and sanitation standards while establishing a mechanism for levies to support affordable and institutional housing. Additionally, the Act provides the legal framework for executing affordable housing programs and projects.


In addition to introducing the affordable housing levy, the Act makes amendments to the Income Tax Act (Chapter 470, Laws of Kenya) to the effect of granting employers a deductible allowance equivalent to each employee’s gross monthly salary spent on the Housing Levy; allowing resident individual employees to qualify for affordable housing relief; and reducing the rate of turnover tax of the gross receipts of a business.


The Act includes significant provisions that establishes the Affordable Housing Fund which is vested and managed by the Affordable Housing Board. The Act also delineates the roles of County Governments in affordable housing and outlines implementation procedures. Furthermore, it specifies eligibility and ownership criteria for affordable housing units.


In this alert, we discuss these key provisions of the Act, analyse ambiguities and assess their potential implications. 


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