KENYA Trends and Developments Contributed by: Lorna Mainnah, Joseph Omwenga, June Lomaria and Herbert Karanja, Dentons Hamilton Harrison & Mathews
to investigate the history of land and “go to the root of the title”, as opposed to simply conclud - ing that the title held by a seller is evidence of the seller’s legal ownership. These steps include: • requesting allotment letters and similar docu - ments in cases where land might be public land; • undertaking property searches and requesting an inspection of the files at the Lands Office; • appointing a surveyor to undertake survey due diligence and searches at the Survey of Kenya; and • checking whether the property is listed in the Ndungu Report on Illegal/Irregular Allocation of Public Land in Kenya. Legislative and Policy Developments The Affordable Housing Act, 2024 With the rapid increase in Kenya’s population, the government has embarked on an ambitious affordable low-cost housing programme target - ing an average of 250,000 units a year. The aim is to give millions of Kenyans access to affordable housing, create job opportunities and support the local construction industry. The Affordable Housing Act, 2024 (AHA) was enacted as law on 19 March 2024 to provide a legal framework for the implementation of the affordable housing programme. The enactment of the AHA comes after a ruling by the High Court declaring the affordable hous - ing levy unconstitutional, as discussed below. The Affordable Housing Levy The AHA introduces a mandatory levy known as the Affordable Housing Levy (the “Levy”) which shall be at the rate of 1.5% of:
• the gross salary of an employee (with an equivalent amount being contributed by their employer) [which the employer shall match an equivalent]; or • the gross income of persons earning income other than salaried income. The Levy must be remitted to the Kenya Reve - nue Authority (KRA) on or before the ninth work - ing day after the end of the month, and failure to do so will result in the accrual of a penalty of 3% on the unpaid amount. The Cabinet Secretary of the National Treasury is allowed under the AHA to exempt certain per - sons or income from deduction of the Levy on the recommendation of the Cabinet Secretary of Lands, Public Works, Housing and Urban Devel - opment. The Cabinet Secretary is yet to gazette this exemption. Categories of affordable housing units The AHA categorises affordable housing units as follows. • Social housing units, targeting those whose monthly income is below KES20,000 (Approx USD153.85). • Affordable housing units, targeting those whose monthly income is KES20,000 to KES149,000 (approximately USD153 to USD376). • Affordable middle-class housing units, aimed at those whose monthly income exceeds KES149,000 (USD376). • Rural affordable housing units, for people liv - ing in any area which is not an urban area. Establishment of the Affordable Housing Fund and Affordable Housing Board The AHA will establish the Affordable Housing Fund (the “Fund”), which will receive the Levy
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