Kenyan Gov't to Make Monthly Deductions from All Employees' Salaries to Fund Construction of Cheap Houses

Kenyan Gov't to Make Monthly Deductions from All Employees' Salaries to Fund Construction of Cheap Houses

National Treasury Cabinet Secretary Henry Rotich has announced plans by the government to set up a fund to raise money for financing the construction of affordable housing units across the country.

Dubbed the National Social Housing Development Fund, the CS said cash collected through the program will finance the building of low cost houses, one of the pillar in President Kenyatta's big four agenda.

 Rotich said the move will help ease pressure on the National Housing Corporation (NHC) to focus on mobilizing resources to finance other housing projects.

Rotich proposed changes to the employment act to allow setting up of the special fund, where all employers and employees will contribute monthly to the fund. A maximum of Sh5,000 will be deducted from employees' gross salary with employers also contributing a similar amount.

“I propose to amend the Employment Act to provide that an employer shall contribute to the National Housing Development Fund, in respect of each employee’ in his or her employment 0.5 percent of the employees gross monthly emolument subject to a maximum of five thousand shillings while the employee will contribute 0.5 percent of their monthly gross earnings,” Mr Rotich said during the reading of budget statement in the National Assembly on Thursday.

The CS said the government has also established the Kenya Mortgage Refinance Company (KMRC) to form a public private partnership (PPP) platform to raise funds for developers.

“We have also developed a comprehensive housing package that will incentivize the private sector in the construction of low cost housing. This includes reduction of corporate tax rates to 15 percent for developers who construct at least 100 units per year,” the Treasury CS said.

“We will restructure the Kenya Urban Support Program, Kisumu Urban Project and Nairobi Metropolitan Services Improvement Project, to provide Sh18.4 billion to support the servicing of land in various towns in the country to bring in private developers into the affordable housing program,” he said.

 

Comments

Rumbwa (not verified)     Thu, 06/14/2018 @ 03:37pm

This means Rotich is starting another Goldenberg,Anglolishing,NYS etc to freeze Kenyans off their meagre salaries and add wealth to majambazi Kirubi and Wanjigi for un-taxed real estate.Yangu hamupati.

Sadek (not verified)     Thu, 06/14/2018 @ 04:33pm

Another form of corruption. Kenya yetu! Why pump money into NYS and now going for the meager salaries of workers?

yakobo (not verified)     Thu, 06/14/2018 @ 05:17pm

this is too much not in favour of the taxpayers. we are not even happy of how the funds are being missused now you want more. open your eyes

jinji (not verified)     Thu, 06/14/2018 @ 08:26pm

now I think we need to go the Egypt way of revolution.this is too much.we must revolt and change things to better.

smart (not verified)     Thu, 06/14/2018 @ 08:55pm

Why does the common mwananchi have to always cater for this selfish government?They government does not even create jobs for youths.People hustle to put food on the table all those elected to power do not even know the price of 1 packet of Jogoo flour and they will come after our hard earned money to cater for their legacy!!!Very sad!!There comes another opportunity for Scandal!!

muhugs (not verified)     Thu, 06/14/2018 @ 11:35pm

this is suicidal more so if contribution shall be across the board for all employees.the thinking is also utopic. we should emphasize creation of jobs through value addition and farming. people will earn money and build themselves houses of their choice.

Obare Anyona (not verified)     Fri, 06/15/2018 @ 12:23am

What has the regime you are serving done with the billions misappropriated by the these so called beautiful women? Give us a break!

te koyale (not verified)     Fri, 06/15/2018 @ 02:24am

This is regimes frustrate. and kill the future of the people in order pill wealth for themselves by stealing thru relatives and confidantes.Revolution is the solution.

Augustine vundi (not verified)     Fri, 06/15/2018 @ 06:32am

I support this idea,but,if and only if, we as Kenyans contributing,be already living in the houses we are contributing towards.we need tangible development. Its better the said bodies get loans,build,then we live as we pay,otherwise this is Kenya,tutachezwa.documents a must.

JOY (not verified)     Fri, 06/15/2018 @ 07:00am

This is not different from putting all kenyans before a Firring squad. We are already funding the government through PAYE and other taxes and what we get back is that the money is stollen. Shame on the CS.

mwangi (not verified)     Fri, 06/15/2018 @ 09:26am

How much are the MPS PAY ? No one and i mean no one is mentioning the mps salaries and all other monies they have allocated themselves ?
and do who will get the houses ? fuck the government . this is too much and we are not going to the streets Kenyans are so tolerant we will pray god to help us

Mugikuyu (not verified)     Fri, 06/15/2018 @ 12:07pm

These fools think they have it all figured out. When the common mwananchi rises, there is no telling what will happen.

Collins Biko (not verified)     Sat, 06/16/2018 @ 08:15am

NYS scandal not enough for uhuru and company.If this turns out to be another scandal, then we will know that uhuru is part of all these and only pretending to be fighting against corruption

DeMasakhwi (not verified)     Sun, 06/17/2018 @ 10:46am

What a scandal? The contribution will be free, then a few houses for the already haves,then ooh we need u to register with birth certificate,death certificate,oooh certificate of good conduct, ooh chief's letter, ooh sijui nini......then lastly: A mega corruption again in the ministry of whatever, cases, oooh no-nonsense DPP prosecuting....and mwisho mwisho another idea of playing the same game from another CS.

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