• Hinga further explained that contributors will only get the amount they will have contributed to the fund after seven years.
• The amount marched by their employers will, however, remain in the fund for another seven years.
Image: HANDOUT
Housing and Urban Development Principal Secretary Charles Hinga now says that your Housing Fund savings will be taxed if you chose to withdraw after seven years.
Speaking on Tuesday on NTV, Hinga said the only way they will not be taxed is if one moves it into his retirement savings.
"Baada ya miaka saba kama huna nyumba unaweza toa lakini pia tunakuambia unaweza transfer hio pesa kutoka kwenye housing fund unaweka kwa retirement na hakuna Ushuru ukifanya hivo. Ile tu withdrawing from the cash ndio inatozwa ushuru," he said.
This translates to, "After seven years if you don't have a house you can withdraw the money but we are also telling you that you can transfer it from the Housing fund to your retirement savings and it will not be taxed. Only the withdrawal as cash will be taxed."
Hinga further explained that contributors will only get the amount they will have contributed to the fund after seven years.
The amount marched by their employers will, however, remain in the fund for another seven years, totalling 14 years for them to access it.
The PS added that the only lot exempted from this is retirees who will get all their money.
"You will get your 3 per cent contribution after the seven years but your employers' contribution will remain in the fund for another seven years before you get it. When you retire, you get all your money," Hinga added.
"We are in the process of making regulations. The regulations we have on draft say that you will get your money back after seven years if you don't get a house. What is important is that you get a house that is discounted at 60 per cent so that a house that goes for Sh7 million you get for Sh3 million and that is our goal."
The proposed National Housing Development Fund has been receiving opposition from many Kenyans.
The government, however, insists that it will help create jobs and in the long run, solve the housing shortage and slum problems in the country.