It is not mandatory- Gov’t clarifies 3% deduction towards Ruto housing fund.
Speaking at an interview, Housing principal secretary, Charles Hinga clarified, president Ruto’s declaration of mandatory 3% deduction of salaries, which will be channeled towards housing.
President Ruto on Sunday stated,”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.
“As a government, we will be at the forefront in implementing this. For all government employees – approximately 700,000 – we will be saving 3 per cent for them after they have made their own 3 per cent contribution,” he added.
The principal Secretary while speaking to journalists, explained that the head of state’s words were taken out of context and misunderstood.
He clarified that salary deduction proposed to facilitate the Housing Fund would be voluntary, with each civil servant, choosing whether to contribute or not.
He further explained that affordable housing plan, is an initiative that will in turn benefit everyone.
The PS stated,”He did not say we shall deduct the money tomorrow. He said that civil servants can elect to start contributions. If you contribute Ksh10,000, the government gives you another Ksh10,000 as your money.”
“That is what the President meant. It is voluntary as we speak. It is not mandatory,” he added.
Hinga further revealed that anyone who contributes towards the housing project, is assured of securing themselves a house, otherwise, their monies will be refunded.
He stated,”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.”
“After seven years and you have not gotten a house, you have the right to pull out the money and transfer it to your pension,” he added.
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