THE NATIONAL HOUSING CORPORATION (AMENDMENT) ACT, 2025
This section gives the Act’s short title and says it should be read together with the National Housing Corporation Act (the principal Act).
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About this statute
This section gives the Act’s short title and says it should be read together with the National Housing Corporation Act (the principal Act). The Board must perform listed functions, including approving projects, budgets, property transactions, borrowing, and internal administration matters. This provision says the principal Act is being amended by inserting new text after section 5. The Board may establish committees from among its members when needed to help carry out its functions. The amendment says certain tenancy agreements, qualifying local purchase orders, and casual labour contracts may be executed by any two senior officers of the Corporation if they are appointed for that purpose by the Director General.
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Provisions of THE NATIONAL HOUSING CORPORATION (AMENDMENT) ACT, 2025
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Part
PART I
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Short title
AI-assisted research summary: This section gives the Act’s short title and says it should be read together with the National Housing Corporation Act (the principal Act).
1. This Act may be cited as the National Housing Corporation (Amendment) Act, 2025, and shall be read as one with the National Housing Corporation Act, hereinafter referred to as the “principal Act”. PART II AMENDMENT OF VARIOUS PROVISIONS Amendment of section 5
Part
PART II
- 2
AI-assisted research summary: The Board must perform listed functions, including approving projects, budgets, property transactions, borrowing, and internal administration matters.
2. The principal Act is amended in section 5- (a) in subsection (1) by deleting the words “carry out of the functions and”; (b) by adding following: imediately after subsection (1) the “(2) Without prejudice to the generality of subsection (1), and subject to the provisions of any other relevant law, the Board shall perform the following functions: 2 No. 9 The National Housing Corporation (Amendments) Act, 2025 (a) approve housing projects and other investments of the Corporation; annual, (b) approve revised of budget and the supplementary Corporation; (c) ensure proper management and administration of assets and other properties of the Corporation; (d) exercise disciplinary authority over employees of the Corporation; (e) approve plans, policy and guidelines for the effective performance of the functions of the Corporation; (f) approve transactions relating sale of to landed acquisition and property; (g) approve borrowing by the Addition of section 5A Corporation; and (h) perform such other functions as may be required under this Act.”; and (c) renumbering subsections (2) and (3) as subsections (3) and (4) respectively. - 3
AI-assisted research summary: This provision says the principal Act is being amended by inserting new text after section 5.
3. The principal Act is amended by adding immediately after section 5 the following “Committees of Board - 5A Verify source ↗
The Board may, for the
AI-assisted research summary: The Board may establish committees from among its members when needed to help carry out its functions.
5A. The Board may, for the purpose of facilitating performance of its functions, establish such number of committees from amongst its member as it may deem necessary.”. Amendment of section 9 - 4
AI-assisted research summary: The amendment says certain tenancy agreements, qualifying local purchase orders, and casual labour contracts may be executed by any two senior officers of the Corporation if they are appointed for that purpose by the Director General.
4. The principal Act is amended in section 9 by deleting subsection (2) and substituting for it the following: “(2) Notwithstanding subsection (1)- (a) tenancy agreements; (b) local purchase orders and agreements not exceeding the value of fifty million shilings; or (c) contracts of casual labourers, between the Corporation and any person or body of persons may be executed in that behalf by any two senior officers of the Corporation appointed for that purpose by the Director General.”. 3 No. 9 The National Housing Corporation (Amendments) Act, 2025 Repeal and replacement of section 12 Repeal and replacement of section 13 Amendment of section 15 Repeal and replacement of section 16 - 5
AI-assisted research summary: This provision amends the principal Act by repealing section 12 and replacing it with new text beginning “Period of payment of rent”.
5. The principal Act is amended by repealing section 12 and replacing for it the following: “Period of payment of rent - 12
AI-assisted research summary: A tenant must pay the rent for the premises to the Corporation, starting when the tenancy begins, and do so before the end of the month the rent relates to.
12. A tenant shall, as from the date of commencement of his tenancy, remit to the Corporation the rent payable in respect of the premises before the end of the month to which the rent relates.”. - 6
AI-assisted research summary: This provision amends the principal Act by repealing section 13 and replacing it with new text about interest on delayed rent.
6. The principal Act is amended by repealing section 13 and replacing for it the following: “Interest on delayed rent - 13
AI-assisted research summary: If a tenant does not pay rent to the Corporation on time, the tenant must pay an extra amount calculated using the commercial bank interest rate on the unpaid rent.
13. Where a tenant fails to remit to the Corporation the whole or part of the rent due from him within the time required, such tenant shall pay, in addition to the rent payable, a sum arrived at by applying the commercial bank interest rate on the unpaid amount of rent.”. - 7
AI-assisted research summary: This section changes the penalty in section 15(2) to a higher fine and longer imprisonment term.
7. The principal Act is amended in section 15(2) by deleting the phrase “not exceeding two thousand shillings or to imprisonment for a term not exceeding six months or to both” and substituting for it the phrase “of not less than five hundred thousand shillings but not exceeding two million shillings or to imprisonment for a term of not less than six months but not exceeding twelve months or to both”. - 8
AI-assisted research summary: This provision amends the principal Act by repealing section 16 and replacing it with new text, but the replacement text is truncated in the source provided.
8. The principal Act is amended by repealing section 16 and replacing for it the following: “False statements information - 16
AI-assisted research summary: An applicant for tenancy, partnership, or other services who willfully withholds material information or makes a false statement commits an offence and may face fines, imprisonment, or both.
16. An applicant for a tenancy agreement, partnership or any other services who willfully fails to disclose any his material knowledge, or who willfully makes any statement which he knows to be false or does not believe to be true, commits an offence and on conviction shall- the case of within (a) in tenancy agreement partnership or between the Corporation and an individual, be liable to a fine of not less than five hundred thousand shillings but not exceeding two million shillings or to imprisonment for a term of not less than six months but not exceeding twelve months or to both; and 4 No. 9 The National Housing Corporation (Amendments) Act, 2025 (b) in the case of tenancy agreement partnership or between the Corporation and a company, be liable to a fine of not less than two million shillings but not exceeding ten million shillings.”. Amendment of section 17 - 9
AI-assisted research summary: A person who resists or obstructs specified officers exercising power under section 17 commits an offence.
9. The principal Act is amended in section 17 by deleting subsection (2) and substituting for it the following: “(2) A person who resists or obstructs any member, officer of the Corporation, police officer or any other authorised person in the exercise of his power under this section, commits an offence, and on conviction shall be liable to a fine of not less than five hundred thousand shillings but not to exceeding imprisonment for a term of not less than six months but not exceeding twelve months or to both.”. two million shillings or Repeal and replacement of section 18 - 10
AI-assisted research summary: This section amends the principal Act by repealing section 18 and replacing it with new wording about the appointment of the Director General.
10. The principal Act is amended by repealing section 18 and replacing for it the following: “Appointment of Director General - 18
AI-assisted research summary: The President appoints the Corporation’s Director General, who serves as chief executive officer and accounting officer, must meet eligibility criteria, and holds office for five years with possible one further reappointment subject to satisfactory performance.
18.-(1) There shall be a Director General of the Corporation who shall be appointed by the President. (2) The Director General shall be the chief executive officer and accounting officer of the Corporation. (3) A person shall be eligible for appointment as Director General if such person has knowledge and experience in housing of not less than five years and real estate matters, business administration and management, engineering, economics, law, finance or any other related field. (4) The Director General shall hold office for a term of five years, and may, subject to satisfactory performance of his for eligible functions, be reappointment for one further term.”. Addition of section 18A - 11
AI-assisted research summary: The principal Act is amended to add a new section titled “Employees and other staff of Corporation.”
11. The principal Act is amended by adding immediately after section 18 the following “Employees and other staff of Corporation - 18A Verify source ↗
Subject to the provisions
AI-assisted research summary: The Board must employ the Corporation’s staff as needed for its work, subject to public service laws.
18A. Subject to the provisions of laws governing public service, there shall be employed by the Board such number of employees and other staffs 5 No. 9 The National Housing Corporation (Amendments) Act, 2025 of the Corporation in such categories and levels as may be necessary for the efficient discharge of the functions of the Corporation and upon such terms and conditions as may be determined by the Board.”. - 12
AI-assisted research summary: This section amends the principal Act by repealing section 20 and replacing it with new text, which is only partially shown here.
12. The principal Act is amended by repealing section 20 and replacing for it the following: “Remuneratio n of members - 20
AI-assisted research summary: Members are entitled to remuneration, fees, or allowances set by the relevant authority.
20. Members shall be entitled to such remuneration, fees or allowances as may be prescribed by relevant authority.”. the - 13
AI-assisted research summary: This section amends the principal Act by repealing section 21 and replacing it with a new provision headed “Gratuity or other retirement benefits”.
13. The principal Act is amended by repealing section 21 and replacing for it the following: “Gratuity or other retirement benefits - 21
AI-assisted research summary: The Board may grant gratuity or other retirement allowances or benefits, but only with approval from the relevant authority.
21. The Board may, subject to the approval of relevant authority, grant gratuity or other retirement allowances or benefits the to Corporation.”. employees of Repeal and replacement of section 20 Repeal and replacement of section 21 Amendment of section 22 - 14
AI-assisted research summary: The amendment lets the Board delegate any of its functions or powers to the Director General by written instrument under the Corporation’s seal, subject to subsection (4).
14. The principal Act is amended in section 22- (a) by deleting subsection (1) and substituting for it the following: “(1) Subject to subsection (4), the Board may, by instrument in writing under the seal of the Corporation, delegate to the Director General any of its functions or powers under this Act.”; (b) by deleting subsection (2); (c) in subsection (4) by deleting paragraph (b) and substituting for it the following: “(b) powers to implement functions under section 5(2)(b), (d), (e), (f) and (g);”; and (d) by renumbering subsections (3) and (4) as subsections (2) and (3) respectively. Amendment of section 23 - 15
AI-assisted research summary: Section 23(1) of the principal Act is amended to add a grants paragraph and renumber the existing paragraph (c) as (d).
15. The principal Act is amended in section 23(1), by- (a) adding immediately after paragraph (b) the following “(c) such grants as may be provided for the purpose of the Corporation; and”; and (b) renaming paragraph (c) as paragraph (d). 6 No. 9 The National Housing Corporation (Amendments) Act, 2025 Amendment of section 24 - 16
AI-assisted research summary: Section 16 amends section 24 so the Government may guarantee repayment of principal and interest on certain loans, promissory notes, or bonds for the Corporation, subject to the Government Loans, Guarantees and Grants Act.
16. The principal Act is amended in section 24, by- (a) deleting subsection (2) and substituting for it the following: Repeal of sections 25 and 26 Amendment of section 27 Amendment of section 31 Addition of section 31A to “(2) Subject the provisions of the Government Loans, Guarantees and Grants Act, the Government may guarantee the repayment of the principal sum and interests on any loan, promissory note or bond issued to, or as the case may be, raised by the Corporation.”; and (b) deleting subsections (3), (4) and (5). - 17
AI-assisted research summary: The principal Act is amended by repealing sections 25 (Cap. 134) and 26.
17. The principal Act is amended by repealing sections 25 Cap. 134 and 26. - 18
AI-assisted research summary: This provision amends section 27 of the principal Act by deleting the words “with the prior approval of the Minister.”
18. The principal Act is amended in section 27 by deleting the words “with the prior approval of the Minister,”. - 19
AI-assisted research summary: This provision amends section 31 of the principal Act by deleting subsection (2) and renumbering the content of subsection (1) as section 31.
19. The principal Act is amended in section 31, by- (a) deleting subsection (2); and (b) designating the content of subsection (1) as section 31. - 20
AI-assisted research summary: This provision says the principal Act is amended by adding new text after section 31, beginning with “Conflict of interest”.
20. The principal Act is amended by adding immediately after section 31 the following: “Conflict of interest - 31A Verify source ↗
(1) A member of the
AI-assisted research summary: Board members and Corporation employees must disclose conflicts of interest immediately and stop taking part in related decisions.
31A.-(1) A member of the Board or an employee of the Corporation shall be considered to have a conflict of interest for the purpose of this Act, if the member or employee has or acquires any pecuniary or other interest that would conflict with the proper performance by that person of the functions or exercise of powers as a member of the Board or employee of the Corporation. time a (2) Where at any member of the Board or employee of the Corporation has a conflict of interest in relation to any matter- (a) before the Corporation for or consideration determination; (b) before any employee of the Corporation referred to or otherwise come that officer for his advice, assistance or decision; to 7 No. 9 The National Housing Corporation (Amendments) Act, 2025 (c) that the Corporation would reasonably expect to be likely to come before it for consideration or determination, that member or employee, as the case may be, shall immediately disclose the interest the person holds to other members of the Board or to the Director General in the case of an employee, and shall refrain from taking part the consideration or determination of the matter. (3) Where the Corporation becomes aware of the existence of a conflict of interest, it shall make a determination as to whether that conflict is likely to interfere with the proper and effective performance of the functions of the Corporation, and the person against whom a conflict of interest is determined shall not take part on the matter for which the conflict of interest relates. in (4) A member of the Board or an employee of the Corporation shall be presumed to have conflict of interest if that person fails without reasonable cause to declare his interests.”. Amendment of section 32 - 21
AI-assisted research summary: This section amends section 32 by replacing the penalty text with a fine of not less than 500,000 shillings and not more than 2,000,000 shillings, or imprisonment from 6 to 12 months, or both.
21. The principal Act is amended in section 32 by deleting the phrase “not exceeding five to imprisonment for a term not exceeding two years or to both” and substituting for it the phrase “of not less than five hundred thousand shillings but not exceeding two million shillings or to imprisonment for a term of not less than six months but not exceeding twelve months or to both”. thousand shillings or Amendment of Schedule - 22 Verify source ↗
Amendment of section 5
AI-assisted research summary: This section changes the principal Act by removing the existing Schedule and replacing it with a new Schedule.
22. The principal Act is amended by deleting the Schedule and substituting for it the following 8 No. 9 The National Housing Corporation (Amendments) Act, 2025 ______ SCHEDULE __________ (Made under section 5(3)) PROVISIONS RELATING TO PROCEEDINGS OF THE BOARD Composition of Board
Part
SCHEDULE
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Short title
AI-assisted research summary: The Board is made up of a Chairman and eight other members, with the Chairman appointed by the President and the other members appointed by the Minister.
1.-(1) The Board shall consist of- (a) a Chairman, who shall be appointed by the President; and (b) eight other members who shall be appointed by the Minister. (2) The Director General shall be the Secretary to the Board. Qualification for appointment of Board members - 2
AI-assisted research summary: When appointing Board members, preference should be given to people with a recognized degree and at least ten years' experience in specified fields.
2. In appointing members of the Board, regard shall be given to persons who- (a) are graduate from a recognised institution; and land (b) have at least ten years experience in either housing and real estate management, field, engineering, architecture, building, finance, law, accountancy business administration. economics, or Vice-Chairman - 3
AI-assisted research summary: Board members must elect a Vice-Chairman from among themselves.
3. Members of the Board shall elect from amongst themselves a Vice-Chairman of the Board. Tenure of office - 4
AI-assisted research summary: The Chairman and a board member are appointed for three years and may be re-appointed for one further term. A member may resign at any time by written notice to the appointing authority.
4.-(1) The Chairman and member of the Board shall be appointed for a term of three years and each be eligible for re-appointment for one further term. (2) Notwithstanding subparagraph (1), a member may at any time resign from office by giving notice in writing addressed to the appointing authority, and from the date specified in the notice or, where no date is so specified, from the date of receipt of the notice by the appointing authority, he shall cease to be a member. 9 No. 9 The National Housing Corporation (Amendments) Act, 2025 Co-option - 5
AI-assisted research summary: The Board may co-opt a non-member to help with deliberations and expertise, but that person cannot vote.
5. The Board may co-opt any person who is not a member to participate in the deliberation of the Board and provide expertise as the Board may require, but such person shall not have right to vote. Cessation of membership - 6
AI-assisted research summary: A Board member may stop being a member at any time for specified reasons, including incapacity, misconduct, missing three consecutive meetings without reasonable excuse, death, or resignation.
6. A member of the Board may at any time cease to be a member on account of- Casual vacancies Meetings (a) inability to perform the functions of his office arising from infirmity of body or mind; (b) misconduct that brings or is likely to bring the Board into disrepute; (c) absence from three consecutive meetings of the Board without reasonable excuse; (d) death; or (e) resignation. - 7
AI-assisted research summary: If a Board member leaves office before the end of their term, the Minister may appoint someone else to take their place until that original term would have ended.
7. Where a member ceases to be a member of the Board before the expiration of his term of office, the Minister may appoint another person in his place to hold office until the time when such first-named person's term of office would have expired had he not so ceased to be a member. - 8
AI-assisted research summary: The Board must ordinarily meet quarterly, and the Chairman or Vice-Chairman may call a special meeting. The Chairman or Vice-Chairman must preside at meetings, and if both are absent the members present must choose one of their number to preside.
8.-(1) The Board shall ordinarily meet quarterly for the transaction of its business as required under this Act. (2) The Chairman, or in his absence the Vice-Chairman, or upon a written request by the majority of members in office may, at any time call for a special meeting of the Board. (3) The Chairman, or in his absence the Vice-Chairman, shall preside at every meeting of the Board, and in the absence of both the Chairman and the Vice-Chairman the members present shall appoint a member amongst themselves to preside over the meeting. Quorum - 9
AI-assisted research summary: A Board meeting has a quorum only if more than half of the members are present.
9. The quorum at any meeting of the Board shall be more than half of the members. Decision of Board - 10
AI-assisted research summary: Board decisions are usually made by majority vote of members present, with the presiding person having a casting vote if votes are equal.
10.-(1) Matters proposed at a meeting of the Board shall be decided by majority of the votes of members present and in the event of an equality of votes, the person presiding over 10 No. 9 The National Housing Corporation (Amendments) Act, 2025 Minutes shall have a casting vote in adddition to his deliberative vote. (2) Notwithstanding subparagraph (1), a decision may be made by the Board without a meeting by circulation of relevant papers among the members, and the expression of the views of the majority of the members in writing, but any member shall be entitled to require that the decision be deferred and the subject matter be considered at the meeting of the Board. - 11
AI-assisted research summary: The Board must keep minutes of its meetings, have them confirmed at the next meeting, and have them signed by the meeting chairman and the Board Secretary.
11.-(1) The Board shall cause to be recorded and kept minutes of all proceedings of its meetings, and the minutes of each meeting shall be confirmed by the Board at the next meeting and signed by the Chairman of the meeting and the Secretary to the Board. (2) When confirmed pursuant to subparagraph (1), the minutes shall be prima facie evidence that the proceedings as recorded in the minutes were the proceedings and decision of that meeting. Board to regulate its own proceedings - 12
AI-assisted research summary: The Board may regulate its own proceedings, subject to this Schedule.
12. Subject to the provisions of this Schedule, the Board may regulate its own proceedings.”. Passed by the National Assembly on 10th June, 2025 BARAKA ILDEPHONCE LEONARD Clerk of the National Assembly 11
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THE NATIONAL HOUSING CORPORATION (AMENDMENT) ACT, 2025
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