President Ruto clarifies 3% proposed housing levy for affordable homes

President William Ruto has clarified the proposed three per cent housing levy to be deducted from employees to enable implement the affordable housing plan.

Speaking at the groundbreaking of the Lapfund Bellevue Park Residence Project in Nairobi, the president said the housing plan was part of his campaign which is not only aimed at offering the underprivileged affordable housing but also creating employment for the youth.

"We went everywhere during campaigns and told Kenyans that there was a housing plan that would give people opportunities for employment and allow them to own homes," Ruto stated.

The president pointed out that the three per cent deduction was not tax but part of the money which will be creating wealth for Kenyans.

"That money is yours and not tax, all that money belongs to the people. This is a programme that we cannot fail to do because it provided jobs for the millions of young people leaving our learning institutions," he noted.

President William Ruto during the groundbreaking of the Lapfund Bellevue Park Residence Project President William Ruto during the groundbreaking of the Lapfund Bellevue Park Residence Project Pulse Live Kenya

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Additionally, Ruto mentioned that tax exemptions have been implemented for all equipment and materials utilized in affordable housing projects. This includes various items such as windows, doors, and hinges, which have been standardized to facilitate mass production.

The head of state hit at politicians fighting the proposal questioning why they did not want Kenyans to own homes yet they paid heavy mortgages for their houses.

"I know that most of you already have mortgages you can pay up to Sh50,000 or Sh20,000. Why would you not want the rest of Kenyans not to own homes? Allow the hustlers also to own homes," he stated.

President Ruto emphasized the government's intention to collaborate with investors in order to significantly increase the annual construction of housing units within the affordable housing plan.

"We will raise the number of housing units from 50,000 to 200,000 each year and progressively raise the proportion of affordable housing from 1 percent to 50 percent annually," he stated.

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Highlighting the necessity of the Affordable Housing Plan, Ruto expressed that it has been challenging for Kenyans with the ability to pay for a mortgage to find suitable homes to purchase and call their own.