Employed Kenyans and their employers will soon contribute 3 per cent of the salaries they earn and additional amount by employers towards Housing Fund, president William Ruto has said.
Civil servants are the main targets and those in formal employment.
The announcement came even as Kenyans and investors decry of harsh economic situation and less than two months after the government revised the National Hospital Insurance Fund (NHIF) and National Social Security Fund (NSSF) upwards.
Yesterday, employers decried that this would occasion thousands of employees being rendered redundant saying the multiple deductions are neither realistic nor are they sustainable.
“Every employee who contributes 3 per cent, the law will compel their employer to also contribute 3 percent to the Housing kitty.” President Ruto said.
He spoke today during church service and the official opening of Friends Church (Quakers) Donholm, Nairobi County.
He said the government will further strengthen the Housing Fund to help more Kenyans purchase affordable housing units.
Ruto said as the government rolls out the affordable housing program, there must be a solid plan aimed at addressing the financing of low-income earners to consume the units.
He added that Kenyans will now be contributing 3 percent of their income and kick start their journey of owning a house.
He was accompanied by Prime Cabinet Secretary Musalia Mudavadi, his spouse Tessie Mudavadi, Cabinet Secretary for Public Service, Affirmative Action and Gender Aisha Jumwa, Nairobi governor Johnson Sakaja, and several Members of Parliament (MPS).
“The employer is being forced to pay more on NSSF, NHIF from the revised contributions made recently. Adding another burden to them and their employees will mean more deductions on the part of their staff and more contributions from employers which is not sustainable. This would result to massive job losses.” Anastacia Wembu, an investment consultant told The Informer Media Group.
President Ruto said the government’s plan of increasing members’ contributions to the National Social Security Fund (NSSF) has helped the country increase its savings.
He said the move will help the country to manage its foreign debt by borrowing locally.
“In just two months, we have doubled the amount of money that we are saving as a country,” he said.
Meanwhile, the president said the government is also working with the county government of Nairobi to clean and make the city green.
“We are not only going to clean the city of Nairobi, but we are also going to generate electricity out of the refuse of the city.” He noted.
The Head of State assured Nairobi residents that the government will increase the number of affordable housing units to ensure they live in decent houses.
Mudavadi urged Kenyans to be patient as the government works on restoring the economy.
“It takes time, consistency, commitment, and sacrifices so that we can get there,” he said.
Sakaja said the government’s digitisation initiative will transform service delivery.
He added that the digitalized system will also increase the county’s revenue collections and hence improve service delivery.
At the same time, president Ruto asked the opposition to take advantage of the bipartisan committee to address issues of concern.
He noted that violent protests have not achieved anything but disrupt and destroy the livelihoods of Kenyans.
“There is no need to destroy people’s property in protests. Opposition leaders should present their grievances to Parliament.” Ruto noted.
