President Ruto Defends 3% Housing Fund Deduction, Says It Was A Campaign Promise

President William Ruto has stated that the 3% affordable housing plan is the only way for low-income earners to own a home.

Speaking at the groundbreaking of the Lapfund Bellevue Park Residence Project in Nairobi, the Head of State stated that the affordable housing plan was a campaign promise he had to fulfill.

Furthermore, he chastised political leaders who were opposed to the plan, claiming that many of them campaigned alongside him and promised Kenyans affordable housing. The solution, he explained, was a 3% deduction.

“The leaders with me during campaigns heard me saying there was a housing plan. Why would they turn their backs now?

“We went everywhere during campaigns and told Kenyans that there was a housing plan that would give people opportunities for employment and allow them to own homes,” Ruto stated. 

Furthermore, he pointed out that some of the politicians who were upset about the deductions were already homeowners, while others were paying mortgages.

“I know that most of you already have mortgages you can pay up to Ksh50,000 or Ksh20,000. Why would you not want the rest of Kenyans not to own homes? Allow the hustlers also to own homes,” he stated.

The Head of State explained that the 3% salary deductions were not tax, but rather money belonging to Kenyans.

He explained that the amount would be deducted from each employee’s salary, with employers contributing an additional 3%.

“In the housing fund plan, employees are to remit 3 percent every month, and the employers will give 3 percent. The six percent will be the employees’ wealth. 

“That money is yours and not tax, all that money belongs to the people. This is a programme that we cannot fail to do because it provided jobs for the millions of young people leaving our learning institutions,” he added.

President Ruto stated that the government intended to engage investors in order to increase the number of housing units built each year under the affordable housing plan.

“We will increase the number of housing units from 50,000 to 200,000 every year and make the proportion of affordable housing from 1 percent to 50 percent yearly.

“It has not been possible for a Kenyan who can pay the mortgage to find a house to buy and call home, and that is why we have the Affordable Housing Plan,” stated Ruto.