Government Requires Approval for Resale Under Affordable Housing Programme

21, Mar 2024 / 2 min read/ By Livenow Africa

Kenyans purchasing homes through the government's Affordable Housing program will need approval from the housing board before they can sell their units, affirmed National Assembly Finance Committee Chairman Kimani Kuria.

Speaking to Citizen TV, Kuria emphasized that homeowners must seek consent from the board, providing valid reasons for resale to be granted permission.

The regulation aims to deter individuals from profiteering as the units were acquired at reduced market rates to benefit low-income earners.

"You must explain to the board the reason for selling so that you are given consent," Kuria stated. "They (houses) have not been sold at market rates; you have bought them at an affordable rate, and remember the price reduction is at the expense of taxation from many Kenyans."

Kuria highlighted that some units are situated on public land, necessitating government approval for resale.

"What you have is just a sectional title for an apartment built on public land," Kuria added. "You may also get a transfer—for instance, if you were working in Kisumu and have relocated to Mombasa. It doesn't make sense to remain in Kisumu when you have moved."

However, Kuria clarified that homeowners are not prohibited from renting out their units if they choose not to occupy them.

"When passing the bill, there was no section that barred anyone from renting out the spaces," he noted.

Under the Affordable Housing program, an individual is allowed to purchase only one unit and must meet eligibility criteria, including submitting copies of their National Identity card, KRA Pin, and Tax Compliance Certificate.

President William Ruto recently assented to the Housing Bill, enabling the collection of the Housing Levy to fund home construction. Employees are required to contribute 1.5% of their monthly salaries towards this, with a matching amount from employers.

The program comprises four components catering to different income brackets, with priority given to slum areas to prevent multiple allocations of housing units.

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