All Salaried Workers To Contribute A Mandatory KSH.200 To Housing Fund

All salaried workers will be contributing a  mandatory 200 shillings to the Housing Fund instead of the initially proposed 1.5 percent of one’s salary under proposed regulations.

The National Housing Development Fund has proposed the new regulations in the projects that aim at making low-income earners homeowners by forcing them into contributing a part of their salaries despite no existence of an assurance of the houses to each one them.

The National Housing Development Fund Regulations, 2020, proposes a minimum contribution of 200 shillings a month and will soon be enforced after it is taken through public consultation.

The maximum contribution will remain a sit was at 5000 shillings according to Transport and Housing Cabinet Secretary James Macharia who also revealed that public participation had been extended for a further one week as COVID-19 was hindering the process.

“The ministry, through the State Department for Housing and Urban Development, invites members of the public to take advantage of the extension of the public participation deadline so that their views can be incorporated in finalizing the regulations,” CS Macharia said.

Once the public participation closes on 26th May 2020, the proposed regulations on the affordable housing fund will be tabled for adoption before parliament and later implemented.

“Notwithstanding the above contributions, in order to qualify for a house in the Boma Yangu affordable housing programme, a member shall need to have contributed 10 percent of the price of the house they wish to buy with no time limit specified to attain the threshold,” CS Macharia explained further.

“The regulations currently specify that a member shall contribute either in a lump sum or the prescribed minimum of Sh200 to the Housing Fund, which shall be immediately credited to the member’s individual account,” CS Macharia said.

Housing which is one of President Uhuru’s Big Four Agenda seeks to provide affordable housing with already 25,000 Kenyans having applied for the project dubbed Boma Yangu initiative.

The houses under the Boma Yangu Initiative will be provided at interest rates of between 3 percent for social housing and 5 to 7 percent for low cost and mortgage gap segments respectively and in case one is deceased, then the contributions shall be paid to the dependants with interest.

Read Also List Of Estates In Nairobi That Should Brace For Dry Taps