State Department for Housing and Urban Development Principal Secretary Charles Hinga has described the Housing Fund as a national chama.
The PS spoke on Thursday during an interview with Spice FM.
"We determined that in order for us to be able to provide those houses at those prices Sh5000, Sh10,000, Sh15,000, we have got to do something that every Kenyan knows how to do. And that is a national chama," the PS said.
Hinga 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 Sh2500 monthly.
Hinga said the majority of Kenyans will pay Sh1000 to the Fund which will sum up to Sh84,000 per person in seven years.
"Even though there is an uproar about the Housing Fund, the truth is we are not bankrupting Kenyans. The collection from everybody is going to give us Sh9 billion a month," he said.
Hinga said with Sh9 billion a month, the state can start projects in the country without consideration of what the investor is saying.
After the construction of the houses, Hinga said Kenyans can be allocated the house in which they will pay an interest of 5 percent.
"A Kenyan in Maralal will enter into a house and continue paying the same rent under the scheme for 30 years, then the house becomes his," Hinga said.
