President Ruto announces salary deduction for all civil servants
President William Ruto on Sunday, April 23, 2023, announced that all civil servants in Kenya will have a 3 per cent deduction from their salaries towards the Housing Fund.
The President announced this while attending a Friends Church (Quakers) service in Donholm, Nairobi. However, he did not give a timeline for when the deductions would take effect.
“Every Kenyan will be able to contribute 3 per cent of their salary towards affordable housing. For every 3 per cent someone saves, the employer will be required by law to save an additional 3 per cent,” President Ruto said.
He added that the government would also join the initiative and contribute 3 per cent on behalf of its approximately 700,000 employees.
The President explained the purpose of the deductions: “So that we can create a fund that will help Kenyans to buy houses.”
He pointed out that Kenya currently has only 40,000 mortgages, but his government aims to increase this number to 2 million, in line with the country‘s economic growth.
Ruto‘s government has set a target of building over 200,000 affordable housing units by 2027, benefiting 2–3 million households.
The President announced that 30,000 affordable housing units have already been built in Nairobi.
“In the next two weeks, I will be in Makongeni to launch the construction of another 30,000 units. We have a plan to build 100,000 affordable houses in Nairobi every year,” he promised.
President Ruto also expressed satisfaction with the recent increase in monthly contributions to the National Social Security Fund (NSSF).
“I am happy that we have repealed the law that required Kenyans to contribute Sh200 to NSSF. As of two months ago, contributions have been fixed at 6 per cent of everyone‘s salary,” he said. Employers must also contribute an additional 6 percent of their employees‘ salaries to the NSSF coffers.
“In just two months, we have doubled the money we save as a country. I want to promise you that we will create a big kitty that we will not have to borrow from outside,” Ruto said, explaining his vision for the NSSF kitty.
He also announced that the government would pay back any borrowing from the NSSF kitty with interest, allowing the fund to grow even more.
Also read: Ruto speaks on civil servants salary delays