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Housing Fund: Ruto announces compulsory salary deduction for gov't employees

Government employees can brace for tough times ahead following President William Ruto's announcement that will see them take home less money if implemented
President William Ruto and Chief Cabinet Secretary Musalia Mudavadi attending a Church service at Friends Church (Quakers) in Donholm, Nairobi County.
President William Ruto and Chief Cabinet Secretary Musalia Mudavadi attending a Church service at Friends Church (Quakers) in Donholm, Nairobi County.

President William Ruto has announced an ambitious plan that will see all civil servants contribute 3% of their salaries towards the Housing Fund.

The head of state who made the announcement during a church service on Sunday, April 23 at Church service at Friends Church (Quakers) in Donholm, Nairobi.

Ruto noted that the scheme will see many Kenyans access affordable housing.

"Every Kenyan will be able to contribute 3 percent of their salary towards affordable housing. For every 3 percent someone saves, the employer will be required by law to save an extra 3 percent.

"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 percent for them after they have made their own 3 percent contribution," the President announced.

Explaining how the Housing Fund will operate, Ruto added that only civil servants will make the contributions: "So that we (Kenya Kwanza administration) can create a fund that will assist people of Kenya to acquire homes."

He noted that the Kenya Kwanza administration is keen on raising mortgages in the country from the current 40,000 to 2,000,000 which is in line with the country's economy.

READ: Ruto’s team finally accepts Raila’s demand to open 2022 election servers

The Head of State also shared that he is impressed with the increased National Social Security Fund (NSSF) monthly contributions.

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