- Hinga revealed that before coming up with the plan, they benchmarked in various countries including Nigeria, Brazil, China and Singapore.
- The PS said they learnt that the countries that have been successful in the plan, decided to have a mandatory levy.
Housing PS Charles Hinga has explained why a contribution to the proposed housing levy is mandatory.
He said it ensured that the government could confidently get investors for the housing plan, with the assurance that they will be able to pay them after construction is done.
"The housing fund is a mandatory contribution by employer and employee... Then as a country, we are able to go out there to the market and call investors and tell them to bring their money, build those houses en mass and when they finish building, give us the keys, get paid and go," he said.
Hinga revealed that before coming up with the plan, they benchmarked in various countries including Nigeria, Brazil, China and Singapore.
The PS said they learnt that the countries that have been successful in the plan, decided to have a mandatory levy.
He spoke on Wednesday during a briefing on the proposal at the State House.
The proposed levy has been met with fierce criticism with a section of leaders and Kenyans at large demanding that contributions be made voluntary.
It will require that employees pay three per cent of their monthly salaries to see that the plan to provide affordable housing to Kenyans is realised.
The PS reiterated that the highest earning person contributing to the Housing Fund will only pay Sh2,500 monthly.
This means that there are Kenyans who will pay as low as Sh1,000.
Hinga added that 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.
The proposal, which is housed in the Finance Bill 2023 is currently in the National Assembly.