We expect Ksh.65B per year from Housing Levy - Lands CS nominee Alice Wahome

Lands, Public Works, Housing and Urban Development Cabinet Secretary nominee Alice Wahome now says the government expects to collect Ksh.65 billion yearly from the contentious Affordable Housing levy touted as one of President William Ruto's legacy projects. 

Appearing before the Committee on Appointments for vetting on Thursday, Wahome said the programme has been disrupted by multiple legal cases in court, causing delays on countrywide implementation.

She added that the court cases prompted the government to invest about Ksh.34 billion collected in the previous financial year in short term investments to gain interest as they await court judgments.

"There has been disruption on this programme through cases and that's why we had some money not used immediately because when you have cases going on you need to first understand where you are," Wahome pointed out.

"The last financial year, we had a balance not utilised because payments had not been done to the tune of Ksh.38 billion and it would be reckless to hold the cash without investing it even if it's short term."

The CS nominee noted that the State expects to collect Ksh.65 billion yearly, which will be used to fund the project countrywide should the programme be given a green light by the court.

"We are releasing for the newly procured ones about 55,000 units and that money is already taken up and we expect an annual income of Ksh.65 billion per year, that's the amount we expect per year," she said.

Wahome explained that the project has employed over 106,000 youths working on 48,000 housing units that are at different stages. She noted that the project will also extend to rural areas if authorised by the court.

Her remarks come after the Court of Appeal recently declared Finance Act 2023, which introduced the Housing Levy, unconstitutional.

During the vetting session, Wahome said her ministry will need Ksh.40 billion to secure all land records under the Ardhisasa platform to enhance accountability and transparency from land officials.

The CS nominee also addressed the controversial Land Bill where owners of freehold land were to pay an annual land levy in addition to land rates.

The proposal was included in the Land Laws (Amendment) Bill, 2023, and sponsored by National Assembly Majority Leader Kimani Ichung'wah. He, however, withdrew the bill following legal issues that arose.

Wahome said that the proposal was only limited to owners of freehold land situated in cities and not countrywide.

She, however, noted that she would forward the amendment to Parliament to target only land owners in cities.

"I cannot change land tenure from freehold to leasehold without owner's consent," Wahome said.