State clarifies contributions for cheap homes voluntary
Wednesday April 26 2023
The proposed three percent monthly contributions by civil servants to the Housing Fund will not be mandatory, offering respite to government workers opposed to it.
Housing Principal Secretary Charles Hinga clarified on Wednesday that the salary deductions would be voluntary and that those who fail to secure houses would be refunded their cash.
The State had said it would match a similar percentage for the new affordable housing fund in a bid to boost uptake of the scheme and enable Kenyans to acquire homes.
“President (William) Ruto did not say we shall deduct the money tomorrow. He said that civil servants could elect to start contributions. If you contribute Sh10,000, the government gives you another Sh10,000 as your money,” he said.
Read: State eyes Sh10,000 a month mortgages
“That is what the President meant. It is voluntary as we speak. It is not mandatory.”
While announcing the plan on Sunday in Nairobi, President Ruto did not indicate when the deductions would take effect.
However, he said the government would be the first to implement the plan for over 700,000 civil servants.
The new administration has envisioned delivering at least 250,000 houses per year to bridge the housing gap.
“The other question people who own homes ask themselves is why they should contribute, yet they have homes. We are asking you to save money so that we solve this social problem of housing,” said Mr Hinga.