Mandatory Salary Deduction Announced by Ruto to Apply to all Government Employees
Mandatory Salary Deduction Announced by Ruto to Apply to all Government Employees. On Sunday, April 23, President William Ruto stated that 3% of all civil officials’ salaries would be withheld in order to support the Housing Fund.
Ruto claimed that the deductions will make it easier for Kenyans to get cheap homes as he was attending a church service at the Friends Church (Quakers) in Donholm, Nairobi. But he omitted to say when the deductions would start.
“Every Kenyan will be able to set aside 3% of their income for a down payment on a home. The law will oblige the company to save an additional 3% for every person who saves 3%.
“As a government, we will lead the way in putting this into practice. After they have each contributed their own 3%, we will save 3% for the roughly 700,000 government workers who make up the entire workforce, the President declared.
Ruto responded to the question of why civil officials will be required to contribute, saying, “So that we can create a fund that will assist the people of Kenya to acquire homes.”
The Head of State further stated that while there are presently only 40,000 mortgages in Kenya, his administration plans to increase that number to 2 million in order to keep up with the nation’s economic growth.
To serve 2-3 million households, Ruto’s administration also plans to build over 200,000 affordable housing units by 2027.
The president declared that 30,000 affordable housing units had already been built by the government in Nairobi.
“I’ll be in Makongeni for the next two weeks to begin building an additional 30,000 units. We have a goal to build 100,000 reasonably priced homes a year in Nairobi,” he pledged.
President Ruto went on to say how happy he was about the higher monthly contributions to the National Social Security Fund (NSSF).
“I am pleased that the law requiring Kenyans to donate Ksh200 to the NSSF been repealed. Contributions are set at 6% of everyone’s wage as of two months ago, according to the President.
Ruto disclosed that employers were required to donate 6% of their employee’s salary to the NSSF kitty, just like the proposed Housing Fund.
“Let me tell you excellent news: We have increased the amount of money our nation is saving in just two months. I want to assure you that we will build a sizable kitty so that we won’t need to borrow money from outside sources, Ruto promised.
The government will pay interest on any borrowings from the NSSF kitty, the president declared, which would help the fund grow.