President William Ruto has announced that every Kenya will be required to contribute at least three per cent of his/her salary towards the Housing Fund.
Speaking on Sunday, April 23, 2023, President Ruto said that the deductions would help Kenyans access affordable housing through the Housing Fund. Ruto was speaking at a church service at Friends Church (Quakers) in Donholm, Nairobi County.
"Every Kenyan will be able to contribute 3 per cent of their salary towards affordable housing. For every 3 per cent someone saves, the employer will be required by law to save an extra 3 per cent," Ruto said.
First targets of the Housing Fund
Ruto, who did not indicate when the deductions will take effect said that the government will be the first to implement the Housing Fund plan for over 700,000 civil servants.
"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 per cent for them after they have made their own 3 per cent contribution," he added.
According to the President, the government will construct over 200,000 affordable houses by 2027, with already 10,000 having been constructed in Nairobi.
"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 said.
On the increment of the National Social Security Fund (NSSF) monthly contributions from Ksh200 to six per cent of one's salary, Ruto said that contributions had more than doubled, and the government is mooting creating a bigger kitty.
"Let me give you good news, in just two months, we have doubled the money 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," he said.
'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 per cent of everyone's salary."
Since March 2023, workers and their employers in the formal sector have been contributing at least Ksh2,000 towards NSSF every month.