President William Ruto has defended his government’s plan to deduct 3% of civil servants’ salaries to cover housing costs.
In an interview with the media at State House, Ruto stated that the proposed levy is not a tax, but rather a win-win project that will see Kenyans get homes when the time comes.
The president stated that the proposals are not only aimed at aiding Kenyans in purchasing homes, but also at creating job opportunities for Kenyan youth.
“We are planning to build 200,000 houses every year. Those houses will create job opportunities for at least one to two million youth.”
“The proposed 3% is not from the entire salary, but rather from the basic salary. And this money is not tax. You are only giving us your money for a period of time to help create more job opportunities by initiating these projects. It is a win-win situation,” said the Head of State.
“What we are saying is you give us 3% and your employer gives us another 3%, and this is your money. The money is no longer with your employer. We will use that money to build affordable houses for the common mwananchi.”
According to the president, the project is divided into two parts: social housing and affordable housing. He explained that social housing is aimed at low-income people, particularly those from informal settlements like Kibra, and that they will be able to pay lower rents in better houses.
On affordable housing, he explained that this is a project that will target everyone, but only on a mortgage basis. The president stated that the levy collected will be used to help build affordable housing.
Ruto went on to say that those who will be deducted the 3% but do not want the houses will get their money back with interest.
This comes at a time when the majority of Kenyans, particularly civil servants, have expressed strong opposition to his proposals.
