President Ruto says housing levy is a win-win deal, not tax

In an interview with the media at State House, Ruto said the proposed levy is not a tax, but rather a win-win project that will see Kenyans get homes when the right time comes.

The president said the proposals are not only aimed at helping Kenyans acquire homes, but also create employment opportunities for Kenyan youth.

“We are planning to build 200,000 houses every year. Those houses will create job opportunities for at least one to two million youth.”

“The proposed 3% is not from the entire salary, but rather from the basic salary. And this money is not tax. You are only giving us your money for a period of time to help create more job opportunities by initiating these projects. It is a win-win situation,” said the Head of State.

“What we are saying is you give us 3% and your employer gives us another 3%, and this is your money. The money is no longer with your employer. We will use that money to build affordable houses for the common mwananchi.”

The president said the project has two sections; social housing and affordable housing. He explained that social housing targets those with low income, especially those from informal settlements like Kibra, where they will get to pay affordable rent in better houses. 

On affordable housing, he explained that this is a project that will target everyone, however, on a mortgage basis. The president said that the levy collected will be maximised to help build the affordable houses.

Ruto further clarified that those who will be deducted the 3% but do not want the houses, will get their money back, with interest. 

This comes at a time when his proposals have faced immense opposition from the majority of Kenyans, especially civil servants.