Introduction to Affordable Housing in Kenya
The Affordable Housing Act 2024 has been a significant development in Kenya's quest to provide affordable housing to its citizens. The Act establishes the Affordable Housing Board as the primary body responsible for overseeing the implementation of the affordable housing program. This board is mandated to ensure the efficient management of the Affordable Housing Fund and the successful execution of housing projects across the country. In this article, we will delve into the composition of the Affordable Housing Board, its mandate and responsibilities, governance and decision-making, oversight of the Affordable Housing Fund, and implementation at the county level.
The Composition of the Affordable Housing Board
The Affordable Housing Board is structured to include a non-executive Chairperson, appointed by the President. Currently, the chairperson is former Kenya Pipeline director Jeremiah Ndambuki Simu. The board is led by acting CEO Sheila Waweru, formerly of the President's Delivery Unit. She participates in meetings but doesn't have voting rights. Other members of the board include the PS for the State Department of Housing Charles Hinga, the PS for National Treasury Dr. Chris Kiptoo, Chief Executive Officer of the Council of Governors, Mary Mwiti, Ernest Nadome, the National General Secretary of Kenya Electrical Trades & Allied Workers' Union (KETAWU), and Cosmas Mutava, a board member of the Federation of Kenya Employers (FKE) and the vice chair of the Security Sector Board at Kenya Private Sector Alliance (Kepsa). This diverse composition is aimed at bringing together experts from various fields to ensure the successful implementation of the affordable housing program.
Mandate and Responsibilities of the Affordable Housing Board
The Affordable Housing Act outlines the Board's key responsibilities, which include managing the Affordable Housing Fund to ensure proper allocation and utilisation of resources. The board is also responsible for overseeing housing projects and enforcing compliance with set regulations. Additionally, the board approves investment programs and determines financial allocations for projects. It conducts audits to evaluate financial and operational performance and collaborates with county governments to facilitate affordable housing initiatives at the local level. The board is also mandated to identify additional funding sources to enhance housing development and enforce ownership regulations to ensure that housing units are allocated in accordance with the law.
Governance and Decision-Making
The board is required to meet at least four times a year to deliberate on housing matters. Meetings are governed by provisions in the Second Schedule of the Act, which stipulate that decisions must be made by a majority vote, with the Chairperson having the deciding vote in case of a tie. Members of the Board serve for a term of three years, with the possibility of one reappointment. The Act also outlines the grounds for removal from office, including non-performance, bankruptcy, or violations of Chapter Six of the Constitution on leadership and integrity. This governance structure is aimed at ensuring transparency and accountability in the management of the Affordable Housing Fund.
Oversight of the Affordable Housing Fund
A key function of the board is the management of the Affordable Housing Fund, which is financed through the Affordable Housing Levy, paid by employees and employers, appropriations from the National Assembly, grants, donations, and voluntary contributions, and income from investments and loan financing. The board has the authority to allocate funds to housing projects and ensure their proper utilisation. It is also empowered to approve bank account operations for the fund, ensuring transparency in financial management. The Affordable Housing Levy has been a subject of discussion, with some arguing that it is a tax rather than a savings scheme. However, the government has maintained that the levy is a necessary measure to raise funds for the affordable housing program.
Implementation at the County Level
The Affordable Housing Act provides for the establishment of County Affordable Housing Committees, which work under the supervision of the Board. These committees develop county-specific housing investment programs, monitor housing projects, and report to both the county governments and the Board. The law mandates counties to align their housing policies with national objectives while retaining autonomy in local implementation. This approach is aimed at ensuring that the affordable housing program is tailored to meet the specific needs of each county. The success of the program will depend on how effectively it balances financial sustainability with the goal of making homeownership accessible to more citizens.
Challenges and Opportunities
The implementation of the affordable housing program is not without challenges. One of the major challenges is the issue of funding. The Affordable Housing Levy has been controversial, with some arguing that it is a tax rather than a savings scheme. Additionally, the program faces challenges in terms of land availability, infrastructure, and regulatory frameworks. However, the program also presents opportunities for growth and development. The construction of affordable housing units is expected to create jobs and stimulate economic growth. Additionally, the program is expected to improve the quality of life for low-income households and reduce the housing deficit in the country.
The Role of County Governments
County governments play a critical role in the implementation of the affordable housing program. They are responsible for identifying land for housing development, providing infrastructure, and facilitating the construction of affordable housing units. County governments are also expected to work closely with the Affordable Housing Board to ensure that the program is tailored to meet the specific needs of each county. The success of the program will depend on the ability of county governments to balance the competing demands of housing development with the need to provide other essential services such as healthcare, education, and transportation.
The Future of Affordable Housing in Kenya
The future of affordable housing in Kenya looks promising. The Affordable Housing Act has provided a framework for the implementation of the affordable housing program, and the Affordable Housing Board is working to ensure that the program is successful. However, there are still challenges that need to be addressed. The issue of funding is a major challenge, and the government needs to explore alternative funding sources to support the program. Additionally, the government needs to work closely with county governments and other stakeholders to ensure that the program is tailored to meet the specific needs of each county. With the right approach, the affordable housing program has the potential to transform the housing sector in Kenya and provide affordable housing to low-income households.
Conclusion
In conclusion, the Affordable Housing Act has been a significant development in Kenya's quest to provide affordable housing to its citizens. The Affordable Housing Board is responsible for overseeing the implementation of the affordable housing program, and it has a critical role to play in ensuring that the program is successful. The board's composition, mandate, and responsibilities are all aimed at ensuring that the program is well-managed and that the Affordable Housing Fund is utilised effectively. The implementation of the program at the county level is also critical, and county governments have a key role to play in ensuring that the program is tailored to meet the specific needs of each county. With the right approach, the affordable housing program has the potential to transform the housing sector in Kenya and provide affordable housing to low-income households.
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