Housing CS addresses concerns over the Housing fund deductions.
Housing CS addresses concerns; While speaking to the senators, the cabinet secretary stated that the housing fund will be of more benefit to employees, its not just a deduction.
The parliament communique stated,”Njeru however stressed that the deductions will not cause any loss to employees.”
Njeru stated the deductions will be made at the rate of 3 per cent of the employee’s salary which will then be matched with another 3 percent from the employer.
He stated,”Moreover, the contributions to the housing fund will attract a return based on the performance of the fund on an annual basis so on the exit of the fund, those who opt out would get a return for their savings.”
” To ease the burden of saving and balancing monthly household needs, we provided for an affordable housing relief that allows for tax relief of Ksh8,000 per month as homebuyers save towards a home.”
The committee senator chairman, Questioned on the concept of the affordable housing program, the National Housing Fund, and the long-term housing finance scheme.
CS Njeru explain the housing plan has always been there since the 1990s, with the goal of providing housing access to the poor, promoting slum upgrading, researching low-cost building materials, and establishing a Housing Development Fund through budgetary allocations and support from development partners.
He stated,”I am happy to report that to date the portal has registered 300,000 members who have voluntarily saved over Ksh2 billion.”
“The housing fund will seek to offer participants in the scheme financing with tenures between 20 and 30 years, targeting interest rates between 3 percent and 7 percent,” he added.