President Uhuru Kenyatta of Kenya has signed an historic agreement to help house more Kenyans in the near future without putting any additional pressure on the exchequer.
Uhuru recently signed an agreement with United Nations Office for Project Services (UNOP) to help the government finance 100,000 affordable housing units.
The deal will form just one part of Kenyatta’s promise to deliver more houses to more people, with the president reiterating the fact that he is focused on building financing and investment frameworks that will “help unlock the private sector to fund the housing program”.
“I’m confident my administration will be able to deliver on our housing commitment without putting undue pressure on the exchequer” said the president in a Twitter post.
The Kenyan government through the Finance Act 2018, plans to raise up to KSh 5,000, roughly R725, from each worker every month to contribute to the National Housing Development Fund. Under the plan, employers will also be required to match employees’ contribution to the fund, up to a maximum of KSh 5,000 each.
The Treasury had set the monthly deduction for each employee at 0.5 % of the gross pay provided the contributions do not exceed KSh 5,000.