3% Salary Deduction To All Civil Servants – On April 23, Sunday, an announcement was made by President William Ruto stating that a 3% deduction will be made from the salary of all civil servants for their contribution in the Housing Fund.
During a visit to the Friends Church (Quakers) in Donholm, Nairobi, Ruto expressed his belief that the proposed deductions would benefit Kenyans by making affordable housing more accessible.
It will be mandatory for all Kenyans to allocate 3% of their income for affordable housing purposes. The employers shall be legally obligated to contribute an additional 3% for every 3% saved by the employees.
The implementation of this initiative will be led by the government itself. In an effort to benefit nearly 700,000 government employees, we will be reserving 3 percent of their savings after they’ve contributed an additional 3 percent, declared the President.
Ruto clarified that civil servants will be required to make contributions to a fund that will aid Kenyans in acquiring homes. The establishment of this fund is the driving force behind this mandate.
The current number of mortgages in Kenya is only 40,000, as stated by the Head of State. In an effort to align with the economy of the country, the administration plans to increase this number to 2,000,000.
By 2027, more than 200,000 affordable housing units are planned by Ruto’s administration, a move intended to benefit about 2-3 million households.
There are 30,000 affordable housing units that have been erected by the government in Nairobi, according to the President.
He made a promise that within 14 days he’ll commence construction of another 30,000 units in Makongeni. He pledged to build 100,000 budget-friendly houses annually in Nairobi.
The augmented monthly payments to the National Social Security Fund (NSSF) highly pleased President Ruto, as he stated.
It brings me joy that the legislation which mandated that Kenyans make a payment of Ksh200 towards NSSF has been abolished.
The President confirmed that since two months past, every employee’s contribution is fixed at 6% of their salary, was announced.
Employers were instructed to allocate 6% of their employees’ salaries towards the NSSF fund, just as they were required to do in the Housing Fund proposal, according to Ruto.
In a mere span of two months, it is with utmost pleasure that I break the joyous news to you – the savings collected as a nation have successfully been multiplied by two.
Ruto shared his vision for the NSSF kitty, assuring that they would establish a substantial reserve without any external borrowing.
Upon making an official statement, the President declared that any instance of the government borrowing from the NSSF funds would result in the repayment of said amount with an added interest, in turn contributing to the growth of the fund as a whole.
3% Salary Deduction To All Civil Servants
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