- Ruto explains why civil servants will have to make the contributions
- The Head of State added that Kenya currently only had 40,000 mortgages hence his administration plans to raise the amount to 2,000,000
President William Ruto announced today at a church ceremony in Donholm Nairobi that all government employees will be the first to be subjected to a mandatory salary deduction of 3%, which will be contributed towards a housing fund.
The President explained that the deductions will help Kenyans access affordable housing, a critical need in the country even as he targets all Kenyans in the plan.
Civil servants to be deducted 3 percent of their salary
The President made the announcement while attending a church service at the Friends Church (Quakers) in Donholm Nairobi. He added that government will be the first to implement the Housing Fund plan for its civil servants.
He noted that for every 3% that an employee saves, the employer will be required by law to save an additional 3%. This means that there will be a total contribution of 6% towards the housing fund.
“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 3% for them after they have made their own 3% contribution,”he announced.
The President went on to say that Kenya currently has only 40,000 mortgages available, which is insufficient considering the country’s population and economy.
He assured Kenyans that his administration would increase the number of available mortgages to 2,000,000, which he believes is in line with the country’s economy.
President Ruto emphasized the importance of affordable housing and how it can help to address the challenges of homelessness and inadequate housing in the country.
He explained why civil servants were being targeting in this Programme.
“So that we can create a fund that will assist people of Kenya to acquire homes,”
He also highlighted the role that the housing sector plays in creating jobs and contributing to the country’s economic growth.
The President’s announcement comes at a time when the country is grappling with a housing crisis, with many Kenyans struggling to access decent and affordable housing.
The move is part of a broader effort by the government to address this challenge and improve the living standards of Kenyans.
The President however did not indicate when the deductions will take effect.