President Ruto announces mandatory salary deduction for all civil servants
Speaking at a Church service at Friends Church (Quakers) in Donholm, Nairobi, President Ruto announces mandatory salary deduction that will be channeled towards affordable housing.
He 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 employees of the government – 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 president however, maintained that only civil servants or government employees will suffer the deduction.
He stated,”So that we can create a fund that will assist people of Kenya to acquire homes.”
The commander in chief, promised that Kenya, currently has only 40,000 mortgages and that his administration would scale up that amount to 2,000,000 accordance with the country’s economy.
He revealed that his Kenya kwanza administration is already building affordable housing units in Nairobi.
He stated,”In the next two weeks, I will be in Makongeni to start construction of an extra 30,000 units. We have a plan to be constructing 100,000 affordable houses every year in Nairobi.”
The president also commended Kenyans for incorporating the savings culture in order to prevent old age poverty.
He stated,” I am happy that we did away with the law that required Kenyans to contribute ksh. 200 towards NSSF. Starting two months ago, contributions are pegged at 6 per cent of everyone’s salary.”
“Let me give you good news, in just two months, we have doubled the amount of money that we are saving as a country. I want to promise you that we will create a big kitty that we will not have to borrow externally,” he added.
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