Ruto, PS Hinga defend 3 per cent housing levy

Housing PS Charles Hinga on Wednesday came out to demystify misinformation in the public in relation to the proposed three per cent housing levy by the government.

Hinga, together with the State House Spokesman Hussein Mohammed held a briefing at State House in Nairobi.

The proposal to have a mandatory contribution to the levy has attracted mixed reactions from Kenyans, with some saying the plan is unachievable.

A lot of Kenyans have been doing their calculations saying it might take years for contributors to raise the Sh3,000,000 estimated to cost a house under the programme.

Hinga said priority will be given to first-time owners, adding that those who will retire in due course will have their money back.

Hinga said so far 524 parcels of land have been identified in major towns all over the country and noted that Kenyans are at liberty to choose where they want to own a home.

"It is not going to be a blind undertaking, however, we are starting a programme where we are going to put 200 units in every constituency and these 200 units will be taken," he said.

"I can promise you even if you don’t think there is demand in Mararal or in Karachuonyo or Nyansiongo in Nyamira, first of all, the government is an employer, we have got so many people in there so we are not just going to do this thing carelessly like without due diligence," he added.

Last week Thursday, the PS likened the Housing Fund's 3 per cent contribution to a national Sacco.

He said the highest earning person contributing to the Housing Fund will only pay Sh2,500 monthly.