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HomePOLITICSGovernment Clarifies on 3% Mandatory Monthly Salary Deduction For Ruto Housing Fund

Government Clarifies on 3% Mandatory Monthly Salary Deduction For Ruto Housing Fund

Gov’t says 3% Deduction is Voluntary

The Hosing Principal Secretary has clarified that the 3 percent Salary Deduction is not mandatory as mentioned by the president.

While the PS was appearing at the KTN News interview, he said that the Kenyans misunderstood the president’s sentiments and took them out of context.

He mentioned that the housing levy will be voluntary where employees willing to contribute can do so.

Nonetheless, the PS stated that the housing plan by the president is a noble idea and will go a long way to benefit government employees in the long run.

Mandatory or Voluntary

“He (Ruto) did not say we shall deduct the money tomorrow. He said that civil servants can choose to start contributions. If you contribute Ksh10,000, the government gives you another Ksh10,000 as your money,” Hinga stated.

“That’s what the president meant. It is voluntary as we speak. It is not mandatory,” the PS clarified.

Charles Hinga went further to clarify that those who will not get a house will be refunded their money contributed. The PS said there was a high demand for affordable housing but the supply was very low.

“The other question people who own homes ask themselves is why they should contribute, yet they have homes. We are asking you to save money so that we solve this social problems of housing,” he stated.

Gov’t says 3% Deduction is Voluntary

“After seven years and you have not gotten a house, you have the right to pull out the money and transfer it to your pension,” he added.

On Sunday April, 23 when the president attended a church service at friends church Quakers in Donholm, he mentioned that all civil servants will part with 3 percent Mandatory Deduction towards affordable housing.

“Every Kenyan will be able to contribute 3 percent of their salary towards affordable housing. For every 3 percent someone saves, the employer will be required by law to save an extra 3 percent,” the president said.

Workers Unions

Many unions representing workers in the country have come out with sharp criticism over this matter citing lack of proper consultation and public participation. Teachers unions are leading in the criticism.

The unions have decried numerous deductions that have left them with very little in their pay slip to the point that they can’t meet their daily needs.

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