Ruto Sets Sight on Ksh10 Billion Monthly Contributions from Kenyans Through Housing Levy
The administration led by President William Ruto is set to obtain Ksh10 billion per month through the implementation of the Affordable Housing Bill passed on Tuesday, March 19th.
On Wednesday evening, Housing Principal Secretary Charles Hinga conveyed this message during a discussion on Citizen TV.
Hinga noted that this amount exceeded the previous deductions by Ksh4 billion, which had been deemed illegal by the courts in January 2024.
“Before the court stopped it, we had peaked at Ksh5 billion a month. Then there was a government contribution of about Ksh1 billion making it between Ksh6 billion to Ksh6.5 billion a month,” Hinga explained.
“Going forward, we are estimating we will be collecting anywhere between Ksh9 billion and Ksh10 billion a month.”
Hinga clarified that the rise of Ksh4 billion stemmed from incorporating non-salaried Kenyans into the Levy payment system.
Salaried individuals in Kenya will see a 1.5 percent deduction from their salary for the Housing Levy, whereas those earning income from partnerships and consultancy fees will face a similar 1.5 percent reduction applied to their total earnings.
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Kenyans employed in the informal sector will have the Housing Levy deducted from their current Turnover Tax (TOT) contributions.
The PS clarified that deductions would commence immediately for all Kenyan citizens across various categories, and these deductions must be reflected in their earnings for March 2024.
Employers need to ensure that their deductions are submitted to the Kenya Revenue Authority by April 9th.
President William Ruto, upon agreeing to the Bill, stated that it would create job opportunities for numerous Kenyans who would be employed in the housing complexes.
Moreover, Ruto foresees the housing sector becoming a significant driver of the Kenyan economy, with the construction of 200,000 housing units annually.
“Today the housing market in the US is greater than their stock exchange market. China is a 19 trillion dollar economy, and 40 percent of that economy is housing,” Hinga explained Ruto’s vision.
Ruto Sets Sight on Ksh10 Billion Monthly Contributions from Kenyans Through Housing Levy
