The government has revised its earlier decision to exclude Kenyans earning more then KSh. 100,000 a month from benefiting in the affordable housing program.
In the new regulations, those earning more than KSh. 100,000 will also be allowed the opportunity to access affordable housing by drawing funds from contributions in the Housing Development Fund.
Earlier guidelines on this income bracket had been to refund individuals contributions plus interest in the Housing Development Fund after a period of 15 years. However, the newly published guidelines will now allow individuals to apply for mortgages on their savings, at an annual interest of 7 per cent.
Under the new regulations, individuals earning a gross salary of less than KSh. 50,000 will acquire homes under a tenant purchase scheme while those earning above KSh. 50,000 will qualify for the 7 per cent mortgage repayable within 15 years.
The new deal will see government undercutting banks and other mortgage lending institutions most of whose interest rates may are currently at double digits.
In December, the Employment and Labour Relations Court suspended the 1.5 per cent levy which could see the government receiving KSh. 57 billion for the affordable housing project, from contributions by salaried Kenyans .
Source; Business Daily