Kenyan President Uhuru Kenyatta yesterday directed the National Treasury in conjunction with the State Department of Housing and Parliament to amend provisions that require mandatory deductions to the Housing Levy Fund.
“The implementation of the housing fund levy as a mandatory contribution for both the employee and employers has at every turn been fought with an avalanche of legal hurdles. I have directed the ministry of the National Treasury as well as ministry responsible for housing to move to parliament for a revision of the legal requirement in respect of the housing fund levy to make the contribution voluntary and this should happen with immediate effect,” he said.
Despite the formation of the Kenya Mortgage Refinancing Company to support the programme, progress has been affected by a court order preventing deductions of workers salaries towards the Housing Levy Fund
The president said the amendment would enable willing Kenyans to participate in the affordable housing programme voluntarily. The affordable housing programme is one of the Big 4 agenda that aims to construct 500,000 houses for Kenyans by 2022.
Recent data from the State Department of housing and urban development shows that 17,000 Kenyans have already began making voluntary contributions to the fund in anticipation of the housing units. This shows that Kenyans are still interested in the programme.