Ruto moves to calm employees over housing deduction
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Ruto says all employees are well protected under the housing project and none will lose their monthly deductions
Ruto says all employees are well protected under the housing project and none will lose their monthly deductions.
President Ruto through CS Njeru has moved to calm employees over housing deduction amid protest.
Zachariah Njeru, the cabinet secretary for land and urban development, testified before the Senate Standing Committee on Saturday, May 20, to respond to inquiries about the Affordable Housing Project.
At the committee, CS Njeru assured the senators that all of the program’s personnel were fully safeguarded and that no one would suffer a loss as the project was carried out.
Njeru, who was joined by top staff members and his Principal Secretary Charles Hinga, emphasized that the new model for Affordable Housing was a solution for all Kenyans, not just government workers.
“CS Njeru however stressed that the deductions will not cause any loss to employees,” read part of the report from the Parliamentary Communication Unit.
While re-affirming the government’s position that employed citizens are well-placed to benefit from the Housing Project, Njeru stated the deductions will be made at the rate of 3 percent of the employee’s salary which will then be matched with another 3 percent from the employer.
The Ministry of Housing explained that the majority of Kenyans were shunned by traditional home financing institutions because they lacked financial muscle.
“Moreover, the contributions to the housing fund will attract a return based on the performance of the fund on an annual basis so on the exit of the fund, those who opt out would get a return for their savings.
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“To ease the burden of saving and balancing monthly household needs, we provided for an affordable housing relief that allows for tax relief of Ksh8,000 per month as homebuyers save towards a home,” Njeru stated.
The Committee chairman Senator Karungo Thang’wa sought clarification on the housing policy, the concept of the affordable housing program, the National Housing Fund, and the long-term housing finance scheme.
In response, CS Njeru explained that the housing policy has been in place since the 1990s, with the goal of providing housing access to the poor, promoting slum upgrading, researching low-cost building materials, and establishing a Housing Development Fund through budgetary allocations and support from development partners.
“I am happy to report that to date the portal has registered 300,000 members who have voluntarily saved over Ksh2 billion.
“The housing fund will seek to offer participants in the scheme financing with tenures between 20 and 30 years, targeting interest rates between 3 percent and 7 percent,” Njeru added.
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