President William Ruto has clarified the 3 per cent contributed from one's income toward the housing fund is not a tax.
Speaking during the groundbreaking ceremony of affordable housing in South C, the President said the money deducted belongs to the people of Kenya.
"The shillings contributed will become, thousand and millions and will be used to construct affordable housing across the country," he said.
The head of state also said that the government has waived tax on all equipment and commodities that will be used in affordable housing.
"All the products including windows, doors, and hinges have been standardized to be produced in masses," he said.
Ruto said his administration is committed to providing affordable housing countrywide and is working with stakeholders including the county governments and the private sector to achieve the same.
"We aim to empower these workers such that they will not only be homeowners but also attain the necessary skills to participate at a larger scale in future construction projects," he said.
"The project will also provide business opportunities for all, especially the youth through the supply of various materials over and beyond those ring-fenced in the program."
The president had announced that civil servants will start contributing 3 per cent of their income to a Housing Fund
He said this was part of a plan the State will soon introduce.
Ruto said the contribution will help civil servants purchase houses built under the Affordable Housing project.
"To enable many Kenyans to buy houses under the affordable housing project, we have a housing fund to which we want every Kenyan to contribute 3 per cent of their income. If you earn Sh10,000, 3 per cent is Sh300 every month goes towards the fund," Ruto said.
