‍State House Dismisses Reports of Kenyans Shunning Affordable Houses ‍

A report released by the Office of the Auditor General on the affordable housing program has cast doubt on its financial viability, after it showed Kenyans have had little uptake of the houses built through taxpayer funds. 

The Auditor General found that over 10,000 houses have remained empty and of little value to the government which spent over Ksh1.27 billion in their construction. Some of the unoccupied houses continue to incur service charges, which is paid by the government through taxpayer funds. 

Despite some of the projects having been completed several years ago, the houses have remained unsold, a problem that seems will last even in the coming days. 

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NHC defended the low uptake of its houses to the public not being aware that it has the houses, but says it managed to sell Ksh2 billion worth of houses in 2022/23.

The Affordable Housing Act that saw Kenyans paying more taxes became law on 18th March 2024. The law requires every employer to contribute 1.5% of an employee’s monthly gross salary to the levy. 

President William Ruto has, however, defended the Affordable Housing Programme as a major source of jobs and economic transformation. A statement released by State House on Tuesday, August 6, clarified that the houses queried in the Auditor General’s report were built before President Ruto assumed office in August 2022. 

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Cost of cooking gas and solar products to hike‍

The cost of cooking gas and solar products could increase if the Supreme Court upholds last week’s Court of Appeal ruling removing the Finance Act 2023, which had zero-rated VAT on LPG. 

This would mean that the standard rating of VAT on petroleum products would also apply on cooking at 8.0%. Petroleum products, with the exception of LPG, currently attract a 16% VAT but the law increasing VAT on fuel from 8 to 16% is part of the Finance Act 2023 which is the subject of the Supreme Court appeal.

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Mobius shuts down after 13 years‍

Mobius Motors, which began manufacturing rugged and affordable SUVs made in Kenya on Tuesday, August 6, announced its decision to cease operations after 13 years, due to financial difficulties, according to a company statement. 

The owners contemplated relocating production to another country, but this option was dismissed because of the logistical difficulties involved in transferring the existing assembly line from Nairobi, Reuters quoted its source at the auto manufacturer.