Ruto announces 3% mandatory salary deduction to all government employees
Ruto announces a 3% mandatory salary deduction towards Housing Fund to all government employees
Ruto announces a 3% mandatory salary deduction towards Housing Fund to all government employees.
President William Ruto has announced that 3% of all government employee salaries would be deducted in order to support the Housing Fund.
Speaking on Sunday, April 23, while attending a church service at the Friends Church (Quakers) in Donholm, Nairobi, Ruto claimed that the deductions will make it easier for Kenyans to get cheap homes.
“Every Kenyan will be able to contribute 3 percent of their salary towards affordable housing. For every 3 percent someone saves, the employer will be required by law to save an extra 3 percent.
“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 percent for them after they have made their own 3 percent contribution,” the President announced.
On why civil servants will have to make the contributions, Ruto explained, “So that we can create a fund that will assist people of Kenya to acquire homes.”
Ruto further added that Kenya currently only had 40,000 mortgages and that his administration would raise that amount to 2,000,000 which is in line with the country’s economy.
Ruto’s government aims to construct over 200,000 affordable housing units by 2027 and the units are expected to benefit 2-3 million households.
The President announced that in Nairobi, the government had already constructed 30,000 affordable housing units.
“In the next two weeks, I will be in Makongeni to start construction of an extra 30,000 units. We have a plan to be constructing 100,000 affordable houses every year in Nairobi,” he promised.
President Ruto further revealed that he was happy with the increased National Social Security Fund (NSSF) monthly contributions.
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“I am happy that we did away with the law that required Kenyans to contribute Ksh200 towards NSSF.
“Starting two months ago, contributions are pegged at 6 percent of everyone’s salary,” the President stated.
Just like in the proposed Housing Fund, Ruto revealed that employers were also mandated to contribute 6 percent of their employee’s salary towards NSSF kitty.
“Let me give you good news, in just two months, we have doubled the amount of money that we are saving as a country.
“I want to promise you that we will create a big kitty that we will not have to borrow externally,” Ruto explained his vision for the NSSF kitty.
The President announced that every time the government would be borrowing from the NSSF kitty, it would be repaid back with interest hence growing the fund more.
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