National Assembly · Afternoon Sitting

Hon. Members, your exemplary conduct is still worth noting. It is excellent. We have not had a quorum hitch at the beginning for the whole week. I have seen something different this afternoon.

[(Applause)]

Leader of the Majority Party.

Thank you very much, Hon. Speaker. I beg to lay the following Papers on the Table:

Thank you. Next is the Chairperson of the Departmental Committee on Justice and Legal Affairs, Hon. Murugara.

I am sorry. I am told the Papers are coming. Kindly allow me a few minutes. I am told some are in your office and others are at the Table Office.

Okay. Next is the Chairperson of the Departmental Committee on Labour. Is that Karemba? Are you a Member of the Committee? Are you ready?

Hon. Speaker, I beg to lay the following Paper on the Table: Reports of the Departmental Committee on Labour on:

Thank you. Next Order.

Hon. Ndindi Nyoro.

Hon. Deputy Speaker, I beg to move the following Procedural Motion: THAT, notwithstanding the provisions of Standing Order 232 (7) relating to timelines for consideration of the Budget Policy Statement (BPS) , this House resolves to extend the period for consideration of the 2024 Budget Policy

Hon. Speaker, I second.

Order, Hon. Members.

Put the Question!

[(Question proposed)]

[(Question put and agreed to)]

Next Order. Chairman, Public Debt and Privatisation Committee

Hon. Speaker, I beg to move the following Procedural Motion: That, notwithstanding the provisions of Standing Order 232A (4) relating to timelines for consideration of Debt Management Strategy, this House resolves to extend the period for consideration of the 2024 Debt Management Strategy by a period of ten days from 25th February 2024. Hon. Speaker, the Committee is in the process of reviewing t…

Hon. Makali Mulu.

Thank you very much, Hon. Speaker. I second the Procedural Motion. As the Chairperson has said, the whole idea behind the extension of time is to allow many stakeholders to input into this important document which will determine how much will be borrowed in this country. Bearing in mind the problem we are facing of public debt, it is important that we allow as many stakeholders as possible to give…

[(Loud consultations)]

Order, Hon. Members. Order, Hon. Abdi Ali and other Hon. Members on your feet, please, take your seats. Hon. Members, before we move on to the next Order, allow me to acknowledge students from the following institutions in the Public Gallery: Kenya College of Accountancy University, Ruaraka Constituency, Nairobi County and Kieni Mixed Secondary

[(Hon. Abdi Ali Abdi and several Members walked into the Chamber)]

[(Question proposed)]

[(Question put and agreed to)]

welcome you all to Parliament. Hon. Murugara, I will now go back to Orders 5 and 6. I will allow you to lay your Papers and give your notice of Motion.

Hon. Speaker, I only have Papers to be laid. Thank you very much. I apologise for the hitch. The work was substantial.

Hon. Speaker, I beg to lay the following Papers on the Table: Reports of the Departmental Committee on Justice and Legal Affairs on its consideration of:

Hon. Speaker, I beg to move the following Motion: THAT, pursuant to the provisions of Article 113 (2) of the Constitution and Standing Order 150 (3) , this House adopts the Report of the Mediation Committee on the County Governments Additional Allocations Bill (National Assembly Bill No.23 of 2023) , laid on the Table of the House on Tuesday, 20th February 2024, and approves the Mediated version …

Shillings) S/No County

(s. 5(6)) Conditional Allocations from proceeds of loans or grants from Development Partners for Financial Year 2023/24 (Figures in Kenya Shillings) S/ N O

S/ N O

National Government's Expenditures on Devolved Functions to be converted to Additional Conditional Grants to the County Governments for Financial Year 2023/24 (Figures in Kenya Shillings)

Conditional Grants to the County Governments for Financial Year 2023/24 (Figures in Kenya Shillings)

Conditional Grants to the County Governments for Financial Year 2023/24 (Figures in Kenya Shillings)

transmitted to the Senate. Thereafter, they were either to pass it the way it was, and then proceed with the signing where it would become an Act, or if they had any variations, it had to come back to this House. If we concurred with it at that moment, it would have gone ahead for signing and become an Act. The process is that when there are variations in terms of opinions between the two Houses …

[(Applause)]

when it comes to the discharge of duties, NG-CDF stands out as a fund that reaches every village in Kenya through these Members. Secondly, there is no better way of discharging the role of maintaining some of our all- weather roads than passing through the Constituency Roads Committee. When we went to that Mediation Committee, those were my reference points. We met with the Council of Governors (…

[(Applause)]

[(Applause)]

Thank you, Hon. Speaker. For reasons already alluded to by the Hon. Chairperson of the Budget and Appropriations Committee. We unanimously agreed to uphold the proposed Bill as presented by the Senate.

Put the Question! I will now put the Question. I see a hand there. Is that Hon. Oluoch? What is it?

[(Hon. Anthony Oluoch raised his hand)]

Thank you very much, Hon. Speaker. I just want to buttress one point, because I was a member of the Mediation Committee. I fully concur with the reasoning and the points advanced by our Co-Chair of the Committee, Hon. Ndindi Nyoro. The only thing I need to add is that Hon. Ndindi Nyoro is trying to be diplomatic. The people who filed this case are the CoG themselves. For some reason, the CoG and g…

Thank you, Hon. Speaker. I will be very brief. It is important that we put this on record. The mediated version of the Bill we are discussing talks about resources for this financial year. The financial year runs from July to June. If you look at the history of this Bill - being an annual one - every year we do it very late, towards the end of the year. The Senate should listen to this; it was cre…

(The mediated version of the Bill was accordingly passed) Hon. Members, before we get to the Committee of the whole House on the Affordable Housing Bill (National Assembly Bill No.75 of 2023), at Order No.11, I want to give the following directions: Certain fundamental issues were raised by the Member for Seme, Hon. (Dr) James Nyikal, to the effect that the Report lacks considerations and conclu…

Thank you very much, Hon. Speaker. As we proceed to the Committee of the whole House, I would like to lay facts on a few issues Hon. James Nyikal raised yesterday during the Second Reading. It is good that we set this record straight. Hon. James Nyikal said that the Departmental Committee on Finance and National Planning and the Departmental Committee on Housing, Urban Planning and Public Works di…

with the stakeholders, to delete that clause. I wanted to take time to set the record straight. That, the Report has observations from and replies to all stakeholders. I encourage my good friend, Dr James Nyikal, to read the Report properly to see the recommendations and the replies made for every issue raised by stakeholders. This is the first time. We are used to reports that have observations …

Hon. Temporary Chairlady, not necessary because it is also dropped. It is dropped. So, we will prosecute it in the same manner. Clause 18 Member for Githunguri then the Member for Suba North.

[(Proposed amendment by Hon. Gathoni Wamuchomba dropped)]

[(Clause 17 agreed to)]

Dropped. I will prosecute it in the same manner.

[(Proposed amendment by Hon. Gathoni Wamuchomba dropped)]

Clause 19

Member for Githunguri, is it a similar fate? Thank you. Clause 20

[(Hon. Gathoni Wamuchomba spoke off the record)]

[(Proposed amendment by Hon. Gathoni Wamuchomba dropped)]

[(Clause 19 agreed to)]

Member for Githunguri, be on record.

contribute.

Hon. Temporary Chairlady, I oppose the amendment by Hon. Oundo, especially when he says that the housing scheme should be done or customised in such a way that a house in Garissa or Mombasa is different. This is very awkward because we are seeking to standardise the housing scheme, including the manufacturing of building materials. For instance, we cannot have a door of a different size in Busia a…

[(Applause)]

Thank you, Hon. Temporary Chairlady. I have been keenly listening to Hon. Oundo and I oppose. He has said that a house in Sio Port should be customised so that it is not similar to a house in Limuru or Endebess. This will be unfair because the houses must be standardised. Even his house in Nairobi is not similar to the one he has in Sio Port. People want to live in a house that is habitable, stand…

[(Hon. Martha Wangari)]

Thank you, Hon. Temporary Chairlady. I also listened to Dr Oundo very keenly and I think he has complicated his amendments. It will affect the two layers of government and create bureaucracies in a simple matter. This is not about having customised houses in different places. Affordable housing is about bringing dignity and making people equal by providing a facility which was non-existent. Theref…

[(Hon. Martha Wangari)]

Having listened to my good brother, I think he missed something. We cannot have different houses. For example, in the Maasai region they build houses similar to a manyatta and in my place where many wazungus were living, they build different types of houses. That is impossible. I think it was a slip of the tongue on his part. So, I request him to drop that amendment so that we can move on. I oppos…

[(Hon. Martha Wangari)]

Thank you very much, Hon. Temporary Chairlady. Hon. Prof is a good man who wants good things for his people but they want better things than he wants for them. They want good houses similar to those in Nairobi. So, he should not subject his people to lower standards of life. Just like he moved from his village and came to Nairobi where he is enjoying a good house, he should also allow them to take…

[(Hon. Martha Wangari)]

Thank you, Hon. Temporary Chairlady. The last person I would like to stand up and oppose is Hon. Oundo. The magic of affordable housing rests on three things: aggregation, standardisation, and specialisation. It goes beyond the construction and occupation of the houses. Remember, we want to engage our artisans so they are the ones furnishing these houses. When you get an order for an entire proje…

deliver and earn out of this affordable housing. This goes beyond construction and occupation. Unfortunately, I oppose the amendment by Hon. Oundo. The Temporary Chairlady (Hon. Martha Wangari): Hon. Tongoyo.

Thank you, Hon. Temporary Chairlady. I think my good friend, Hon. KJ has kind of read my mind. I want to tell my good friend Hon. Oundo that when we were discussing about affordable housing, a majority of us in the Kenya Kwanza Coalition thought standardisation was a means of bringing their price down by having the windows, doors, and other items in the housing made in one particular manner. This …

[(Hon. Martha Wangari)]

[(Hon. Martha Wangari)]

Hon. Temporary Chairlady, I beg to move that new Clause 40A be now read a Second Time. This amendment is seeking to provide for the commensurate penalty for misappropriation of funds and assets of the Fund. Therefore, the Bill provides a penalty that is commensurate to the amount of money separated making it impossible or very punitive for anyone who may have intention of misappropriating these f…

[(Question, that the new clause be read a Second Time, proposed)]

[(Question, that the new clause be read a Second Time, put and agreed to)]

[(Question, that the new clause be added to the Bill, put and agreed to)]

Hon. Temporary Chairlady, I beg to move that the new clause 43 A be now read a Second Time. The import is that funds that have, for example, been held in Boma Yangu Platform will now fall into a new fund. With that, I beg to move.

[(Question, that the new clause be read a Second Time, proposed)]

Thank you, Hon. Temporary Chairlady. The amendment is well intentioned because of the consequences of such kind of changes made into law. I am apprehensive that by asking NHC to transfer the funds they collected as a consequence of the regulations of 2018, you are essentially incapacitating and killing them. This is the long-time consequence of the amendment. By the time you reorganise and give th…

Thank you, Hon. Temporary Chairlady. With all due respect to Prof, I think he did not get the gist of the amendment. It simply says that some money was collected before this Act which needs to be regularised. That is why the Chairperson gave an example of Boma Yangu. That is the fund he is talking about. It has nothing to do with incapacitating… That money is currently unutilised by the National H…

[(Question, that the new clause be read a Second Time, put and agreed to)]

[(Question, that the new clause be added to the Bill, put and agreed to)]

[(Hon. Martha Wangari)]

No. The Temporary Chairlady : That will be dropped. Hon. Gathoni Wamuchomba dropped) Next is the proposed amendment by the Chairperson.

[(Hon. Martha Wangari)]

Hon. Temporary Chairperson, I beg to move that the Second Schedule be amended... The Temporary Chairlady : Hon. Chairperson, it is the Schedule.

[(Hon. Martha Wangari)]

The Second Schedule. The Temporary Chairlady : No, the Schedule.

[(Hon. Martha Wangari)]

This has several imports. One is the amendment of the Income Tax Act to make the Housing Levy a deductible expense for companies. Second, it seeks to further activate the Affordable Housing Relief for employees paying the Housing Levy. There is an amendment to the KRA Act to include the Affordable Housing Act of 2024 which the Kenya Revenue Authority is responsible for. This answers to…

is only one Schedule that is already in the Bill. The amendments you were to move… (The Temporary Chairlady consulted the Clerks-at-the-Table) Order, Hon. Members. Let us make that a bit neat. New Schedules THAT, the Bill be amended by renumbering the existing schedule as “First Schedule” and inserting the following new schedule immediately the “First Schedule” Second Schedule (s.43)

Hon. Kimani Kuria (Molo, UDA): Hon. Temporary Chairlady, I beg to move that the Second Schedule be now read a second time. As I explained earlier, this Second Schedule also amends the Income Tax Act to make the Housing Levy a deductible expense for companies. That means when companies are paying for their corporation tax, the employer contribution becomes a tax allowable expense for corporation t…

Thank you, Hon. Temporary Chairlady. I have read the Second Schedule and the first column talks about the consequential amendments on Sections 31 (b) and 31 (c) of the Employment Act No.11 of 2007. The Temporary Chairlady : Hon. Chairperson, kindly pay attention.

[(Hon. Kimani Kuria consulted loudly)]

[(Hon. Martha Wangari)]

Hon. Temporary Chairlady, the purpose of this is to repeal Section 31 of the Employment Act of 2007. If you read the Employment Act closely, the Section provides for housing. It clearly provides that an employer is obligated to provide reasonable housing accommodation for its employees near their place of employment. Secondly, an employer is obligated to pay an employee House Allowance or reasona…

[(Hon. Martha Wangari)]

Hon. Temporary Chairlady, the Hon. Member refers correctly to Section 31 of the Employment Act but the sections that are being repealed on this Schedule are Sections 31 (b) and (c) . They were both introduced in the Finance Act of

Hon. Temporary Chairlady, with a lot of respect to the Chairperson of the Departmental Committee on Finance and National Planning, he is talking of the Finance Act but this Schedule talks about the Employment Act No.11. Unless there is an amendment in respect to the Finance Act…

Members. Hon. Kuria Kimani.

Hon. Temporary Chairlady, with a lot of respect to my friend, the Member for Marakwet, any piece of legislation introduced, for instance, the Finance Act, will amend different Acts of Parliament. One of the Acts that was amended by the Finance Act is the Employment Act. In the same way, the Affordable Housing Bill is amending other sections of the law like the KRA Act and the Employment Act. The …

[(Hon. Martha Wangari)]

Thank you. I support the proposal and explanation given by the Chairperson of the Departmental Committee on Finance and National Planning. Indeed, Section 31 (b) and (c) was a creation of the Finance Act that we passed here in June, which contains the Housing Levy that is currently the subject before this House. Unless Section 31 (b) and (c) is amended in consonance with the amendments we have tod…

[(Hon. Martha Wangari)]

We must get it clear that the first introduction of the Housing Levy was through an amendment to the Employment Act, where we introduced Section 31 (b) and (c) . Believe it or not, this was the subject of litigation in court. The court told us that we do not have a good framework that deals with the Housing Fund. Now, through the enactment of this Bill, the amendments in the Finance Act and the Em…

[(Question, that the new schedule be read a Second Time, put and agreed to)]

[(Question, that the new schedule be added to the Bill, put and agreed)]

Hon. Temporary Chairlady, I beg to move that the new Third Schedule be now read a Second Time. This is a list of agencies that will be used to implement affordable housing programmes. It is a legal framework that even allows counties and the NHC to receive money from this Fund. The fears raised by Hon. Gathoni Wamuchomba and other colleagues have been addressed by this. (Question, that the new s…

Hon. Temporary Chairlady, allow me to support this. This Schedule now caters for many issues that some Members raised during the Second Reading, especially, on the Kenya Slum Upgrading programmes. Members also questioned the role of the county governments under this programme. Now county governments can access money from this Fund to implement their affordable housing or social housing programmes.…

[(Hon. Martha Wangari)]

[(Hon. Martha Wangari)]

Hon. Temporary Chairlady, I thank the Departmental Committee on Finance and National Planning for coming up with this Schedule. Various agencies led by the NHC have been carrying out this housing project. The NSSF is known for the various housing upgrades in the country. It is experienced. It has the money, ability and the expertise to do it. In the private sector, several entities carry out the i…

[(Hon. Martha Wangari)]

Hon. Temporary Chairperson, before I reply to Hon. (Dr) Oundo, it is important to mention that as a result of these two schedules, the renumbering of the schedules is going to change. The wisdom in having the NSSF and private entities is that this law is not trying to re- invent the wheel. The most important function of this law is to provide a framework for this Fund by making it a revolving fun…

Thank you, Hon. Temporary Chairperson. I agree with Hon. Oundo on one thing. This affordable housing scheme will either succeed or fall depending on the discipline with which we implement it. Once we pass this, as a House, we must ensure that our oversight is laser-focused and no single cent is lost. This scheme was successful in Singapore and Malaysia because if one deviated even a single cent, t…

[(Question, that the new schedule be read a Second Time, put and agreed to)]

[(Question, that the new schedule be added to the Bill, put and agreed to)]

[(Hon. Martha Wangari)]

THAT, Clause 2 of the Bill be amended —

Hon. Temporary Chairlady, my amendment is withdrawn. Hon. Gathoni Wamuchomba withdrawn) The Temporary Chairlady : Member for Mathare. He is not in the House. The amendment is dropped. Member for Funyula. Hon. Antony Oluoch dropped) Hon. Temporary Chairlady, I beg to move:

[(Hon. Martha Wangari)]

(Proposed amendment by Hon Oluoch dropped)

THAT, the Bill be amended by deleting the long title and substituting therefor the following new long title— “AN ACT of Parliament to give effect to Article 43 (1) (b) of the Constitution; to provide a framework for development and access to affordable housing and institutional housing; and for connected purposes” This is an introduction of institutional housing to the title of the Bill to take ca…

[(Hon. Martha Wangari)]

Thank you, Hon. Temporary Chairlady. I rise to support this amendment. As it has been said by the Chairperson, it now brings into the fold the institutional housing. Since I had prosecuted the case for institutional housing, I would only have wished the Departmental Committee on Housing, Urban Planning and Public Works and the Departmental Committee on Finance and National Planning considered some…

[(Hon. Martha Wangari)]

that are locally available. So, they did not want those houses to be built using machine cut stones that are not available in the community. They want those locally available materials to be used. We have also expressly provided 29 (f) (c) for students who are in vocational training colleges in polytechnics to get internship and attachment opportunities in this project. That is why we do not feel …

Hon. Temporary Chairlady, the Leader of the Majority Party is distracting me. Please send Hon. Kimani Ichung’wah away from my desk. The Temporary Chairlady : I could not see him there.

[(Hon. Martha Wangari)]

I am here and wondering whether we are doing the same business with him. He is always coming to my desk to disrupt me. The Temporary Chairlady : Order, Members. Order, Leader of the Majority Party. Hon. Wamuchomba, move your amendment.

[(Hon. Martha Wangari)]

He came here with an intention to disrupt me. The Temporary Chairlady : Order, Hon. Wamuchomba. You either move the amendment or drop it.

[(Hon. Martha Wangari)]

Let me drop it because I was not following the proceedings.

[(Applause)]

Thank you, Hon. Temporary Chairlady. For the record, I was not distracting the Member of Githunguri.

He came here and I told him that I am married. Let him stay at his desk. `

[(Laughter)]

Hon. Temporary Speaker, I beg to report that the Committee of the whole House has considered the Affordable Housing Bill (National Assembly Bill No. 75 of 2023) and approved the same with amendments.

Mover. Hon. Temporary Speaker, I beg to move that the House do agree with the Committee in the said report. I request Hon. Owen Baya, the Deputy Leader of the Majority Party and Member for Kilifi North, to second the Motion for agreement with the report of the Committee of the whole House.

Hon. Temporary Speaker, I second this for agreement. This is a very important piece of legislation that will move this country forward. I ask every Member who wishes this country well, to move it forward, create jobs and wealth for our young people, and modernise it, to support this very important piece of legislation.

Thank you. Chair of the Committee. Sorry. Just a Minute. Let the Chair have a chance.

be amended by inserting the words “subject to recommittal of Clause 41.” I request Hon. Njeri, the County Member of Parliament for Kirinyaga to second.

Thank you, Hon. Temporary Speaker. I note the proposed amendments to Clause 41. As it was, it was bad in law. Good faith is discretionary and is subject to interpretation. Inserting that all facts must be within the confines of law, ring-fences the funds from ultra vires abuse. I second. Thank you.

Thank you, Members.

[(Question proposed)]

THAT, Clause 41 of the Bill be amended by inserting the words “and in accordance with the law” immediately after the words “good faith”. Clause 41 reads: “No matter or thing done by any person under this Act shall, if the matter or thing is done in good faith, render that person personally liable to any action, claim or demand whatsoever.” We are amending this to include that, that particular per…

[(Clause 41 as amended agreed to)]

The Leader of the Majority Party. Hon. Temporary Chairlady, I beg to move that the Committee do report to the House its consideration of the Affordable Housing Bill (National Assembly Bill No. 75 of 2023) and its approval thereof with amendments.

Order, Hon. Members. You may now take your seats.

Hon. Temporary Speaker, I beg to report that the Committee of the whole House has considered the Affordable Housing Bill (National Assembly Bill No. 75 of 2023) and approved the same with amendments.

Mover.

Hon. Speaker, I beg to move that the House do agree with the Committee in the said report. I also request Hon. Betty Maina to second the Motion for agreement with the report of the Committee of the whole House.

[(Laughter)]

Hon. Betty Maina.

I second.

[(Laughter)]

[(Laughter)]

You are not the Leader of the Minority Party.

[(Laughter)]

Put the Question! Is it the mood of the House that I put the Question?

Yes.