Kenyans To Contribute 3% Of Income To Housing Fund

President William Ruto has announced plans for the Housing Fund that will see Kenyans contribute 3 percent of their income which will be matched by their employers to enable them to buy homes.

President Ruto said as the government rolls out the affordable housing program, there must be a solid plan aimed at addressing the financing of low-income earners to consume the units.

“To enable many Kenyans to buy houses under the affordable housing project, we have a housing fund to which we want every Kenyan to contribute 3 percent of their income. If you earn Sh10, 000, 3 percent is 300 shillings every month goes towards the fund,” Ruto said.

The President added that, for other Kenyans who will also opt to contribute three percent of their incomes to the fund, the law will compel their employers to give the same percentage. He said the move is part of a new plan that the government is set to roll out to enable Kenyans to acquire homes.

“Every employee who contributes 3 percent, the law will compel their employer to also contribute 3 percent to the Housing kitty,” he added.

“As a government, we will be at the forefront in implementing this. For all employees of the government – approximately 700,000 – we will be saving three percent for them after they have made their own three percent contribution,” he added.

He noted that currently there are one million mortgages with the government working towards increasing this to two million.

“Most Kenyans live in dilapidated houses, we are planning to have 100,000 new affordable houses for urban dwellers annually so that they can afford to pay between Sh4,000 and Sh10,000 and in 15 years own the houses in efforts to ensure decent living conditions for citizens,” said Ruto.

The President assured Kenyans that the government has put in place drastic measures to address the economic challenges facing the country.

He spoke during church serving and the official opening of Friends Church (Quakers) Donholm, Nairobi County. Present were Prime Cabinet Secretary Musalia Mudavadi, his spouse Tessie, Cabinet Secretary for Public Service, Affirmative Action and Gender Aisha Jumwa, Nairobi Governor Johnson Sakaja, and several MPs.

President Ruto said civil servants will also benefit from the program. President Ruto said the government’s plan of increasing members’ contributions to the National Social Security Fund (NSSF) has helped the country increase its savings.

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