---
description: >-
  The Act provides a framework for the development and access to the affordable
  housing and institutional housing including the imposition of the Affordable
  Housing Levy.
---

# 5. Affordable Housing Act 2024

Quick Link: [https://new.kenyalaw.org/akn/ke/act/2024/2/eng@2024-03-22](https://new.kenyalaw.org/akn/ke/act/2024/2/eng@2024-03-22)

·          Under the Act, affordable housing is defined as housing that is adequate and costs not more than thirty percent of the income of a person per month to rent or acquire. The Act further makes a distinction between different types of units under affordable housing scheme. These include:&#x20;

(a) A social housing unit which refers to a house targeted to a person whose monthly income is below twenty thousand shillings;&#x20;

(b) An affordable housing unit which refers to a house targeted at a person whose monthly income is between twenty thousand and one hundred and forty-nine thousand shillings;&#x20;

(c) An affordable middle-class housing unit which is a middle to high-income housing targeted at persons whose monthly income is over one hundred and forty nine thousand shillings; and&#x20;

(d) Rural affordable housing unit which is a house targeted at a person living in any area which is not an urban area.&#x20;

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·          The following are the key clauses under the Act.&#x20;

1.  Section 4 which introduces the imposition of the Affordable Housing Levy (“Levy”). The Levy is payable by both the employer and the employee as follows:&#x20;

    * 1.5% of the employee’s gross monthly salary by the employee; and&#x20;
    * 1.5% of the employee’s gross monthly salary by the employer.&#x20;

    The Levy is payable not later than the ninth working day after the end of the month in which the gross salary was due, received or accrued. &#x20;
2. Section 8 which establishes the Affordable Housing Fund (“Fund”) into which the following monies are paid:&#x20;
   * The levy;&#x20;
   * Appropriations by the National Assembly for the purposes of the Fund;&#x20;
   * gifts, grants or donations;&#x20;
   * voluntary contributions;&#x20;
   * income from investments made by the Fund;&#x20;
   * loans approved by the Cabinet Secretary for the time being in charge of the National Treasury; and&#x20;
   * income accruing to the Fund in the course of the performance of its functions under any written law.&#x20;
3. Section 10 which stipulates that the purpose of the Fund be the provision of funds for the design, development and maintenance of affordable housing, institutional housing and associated social and physical infrastructure including:&#x20;
   * The provision of funds for affordable housing and affordable housing schemes in the promotion of home ownership;&#x20;
   * Provide low-interest loans or low monthly payment home loans, where applicable for the acquisition of affordable housing units within the approved affordable housing schemes;&#x20;
   * Facilitate design, development and maintenance of affordable housing schemes in all counties;&#x20;
   * Facilitate the development of institutional housing units;&#x20;
   * Develop long-term finance solutions for the development and off-take of affordable housing; &#x20;
   * Provide funds for maintenance of any land or building, estate or interest therein, for any of the purposes of the Fund;&#x20;
   * Fund any other activities incidental to the furtherance of the objects of the Fund; and&#x20;
   * Facilitate the provision of services to the projects under the management of the Fund.&#x20;



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