President William Ruto has defended the planned housing levy saying that it is the only way to enable low-income earners to own homes.
Speaking at the groundbreaking of the Lapfund Bellevue Park Residence Project in Nairobi, the Head of State noted that the affordable housing plan was a campaign promise he had to fulfil.
“The leaders with me during campaigns heard me saying there was a housing plan. Why would they turn their backs now?”
“We went everywhere during campaigns and told Kenyans that there was a housing plan that would give people opportunities for employment and allow them to own homes,” Ruto stated.
Additionally, he noted that some politicians who were complaining about the deductions were already homeowners and others were paying mortgages.
“I know that most of you already have mortgages you can pay up to Ksh50,000 or Ksh20,000. Why would you not want the rest of Kenyans not to own homes? Allow the hustlers also to own homes,” he stated.
The Head of State explained that the 3 per cent salary deductions were not tax but money that belonged to Kenyans.
He explained that the amount would be deducted from the salary of every employee and an additional 3 per cent contributed by employers.
“In the housing fund plan, employees are to remit 3 per cent every month, and the employers will give 3 per cent. The six per cent will be the employees’ wealth.”
“That money is yours and not tax, all that money belongs to the people. This is a programme that we cannot fail to do because it provided jobs for the millions of young people leaving our learning institutions,” he added.
“President Ruto noted that the government had plans to engage investors to ensure that the number of housing units put up yearly was increased in the affordable housing plan.
“We will increase the number of housing units from 50,000 to 200,000 every year and make the proportion of affordable housing from 1 per cent to 50 per cent yearly.”
