LSK JSC Incoming Representative Calls for Housing Levy Overhaul: “Make the KSh72 Billion Revolve Before Collecting More”
By Jeff Kizzilah Digital Editor The
Ekatarina Handa, the incoming Law Society of Kenya (LSK) representative at the Judicial Service Commission (JSC), has proposed a practical restructuring of Kenya’s Affordable Housing Levy, arguing that the government should focus on making the existing fund revolve before expanding it or collecting more money from Kenyans.
Handa says the solution to the housing financing challenge is not to increase the levy, borrow more money or make new promises on housing units, but to ensure that the approximately KSh72 billion already accumulated is put to work as a genuinely revolving fund.
She has proposed four key measures.
1. Publish the Accounts and Freeze New Projects
Handa wants the Affordable Housing Board to fully exercise its obligations under Section 28 of the Affordable Housing Act by publishing a comprehensive public dashboard showing the status of projects and funds.
She proposes freezing the launch of new projects until units already marked as complete are titled, sold and their proceeds returned to the Fund.
“A revolving fund that does not revolve is just a tax,” Handa argues.
2. Use the Levy to Unlock Private Capital
Rather than spending the monthly housing levy directly on construction, Handa proposes placing the funds in a Central Bank escrow arrangement and using them as a first-loss guarantee to reduce investment risk.
Under her proposal, the approximately KSh72 billion could be used as security to unlock significantly larger financing from pension funds and SACCOs, allowing private capital to finance construction while the State plays the role of guarantor rather than contractor.
3. Strengthen Legal and Financial Oversight
Handa is also calling for stronger oversight of the Fund, including amendments to Regulation 5 to bring it fully under the oversight of the Controller of Budget pursuant to Article 228 of the Constitution.
She further proposes giving the Kenya Revenue Authority stronger enforcement powers under Section 4.
Her position is that public revenue should operate under clear, transparent and accountable institutional arrangements.
4. Sell Existing Homes Where Demand Already Exists
Handa says the government should prioritise Tenant Purchase Schemes for completed housing units in Nakuru, Eldoret, Kisumu and Mavoko, rather than concentrating resources on launching additional greenfield mega-projects.
She argues that Kenyans are more likely to support the levy when they can see tangible housing benefits within a reasonable timeframe.
“A Kenyan who can see, occupy and pay for a house in 60 days will defend the levy. A Kenyan who is shown a billboard for five years will challenge it,” she says.
Handa maintains that her proposal does not require another tax, a new World Bank loan or an entirely new legal framework.
Instead, she argues that the government should focus on implementing the existing law, improving transparency, selling completed units and reinvesting the proceeds so that the Fund can continuously finance additional housing.
“Collect lawfully, account openly, and let the Fund do what its name says — revolve,” Handa says.
