CS Wahome, PS Hinga grilled by senators over affordable housing programme, housing levy
Senators questioned why Kenyans were being taxed for houses they were not assured of owning.
The controversy surrounding the affordable housing programme played out on Tuesday as Lands Cabinet Secretary Alice Wahome and Housing Principal Secretary Charles Hinga faced tough questions from senators over its implementation.
During a session on Tuesday with the Senate Roads, Transportation, and Housing Committee, Wahome and Hinga were pressed to explain key concerns about the project, including taxation, land ownership, and the use of housing levy funds.
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Senators questioned why Kenyans were being taxed for houses they were not assured of owning.
They also raised concerns about some projects being built on government land without title deeds and the low uptake of the housing levy fund.
“Kenyans are paying a housing levy, and the land [where the houses are being constructed] is provided by the government, why are you selling them to Kenyans?” asked Laikipia Senator John Kinyua.
Kitui Senator Enoch Wambua added, “Why are we selling houses built by the government using money (taxes) donated by other people?”
Unutilised billions
Committee chairman Migori Senator Eddy Oketch questioned why billions allocated for the project remained unutilised.
“I’m concerned about the low absorption of the housing levy fund and where that money is banked. Is it at the Commercial Bank or the Central Bank?” he asked.
CS Wahome acknowledged that some houses were being built on government land without title deeds but assured senators that beneficiaries would receive the necessary documents upon completion.
“The houses are given on a tenant-purchase arrangement. The title is not needed immediately when we are building. But on the completion of the units, we will be able to get the geo-referencing to be able to develop sectional titles. So, there is no danger,” she told the Senators.1
The CS revealed that 4,888 houses had been completed and were ready for handover, with 27,000 people having applied for them.
PS Hinga defended the housing levy, saying the funds help subsidize mortgages for successful applicants.
Under the social housing programme, he explained, applicants pay an interest rate of three per cent, with no deposit required, and are given up to 30 years to complete payments.
Those in the affordable housing category pay six per cent interest.
PS Hinga attributed the slow use of housing funds to delays in disbursement by the Affordable Housing Board due to prolonged consultations between the National Treasury and the Central Bank of Kenya.
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