President William Ruto’s administration has collected KSh 5.6 billion from the Housing Fund in two months.
Ruto targeted to build 25,000 housing units every year.
President William Ruto speaking at a past event. Photo: State House Kenya. Source: Facebook
Lands Cabinet Secretary (CS) Zachary Njiru confirmed that the money is a combined levy for July and August 2023.
Njiru said the Kenya Revenue Authority (KRA) is mandated to ensure monthly collection of the levy.
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“We have a combined amount of KSh 5.6 billion for the months of July and August. We are coming up with regulations that will administer this fund and ensure that it goes to its intended purpose,” said Njeru.
The CS reiterated the government’s move to ring-fence the Housing Fund, adding that his ministry invites public opinion on the fund management,
In August 2023, KRA issued a directive to employers to collect the 1.5% housing tax missed in July 2023 and match the same in the August payroll.
The taxman called on employers to be compliant, failure to which they risk a 2% penalty of the unpaid funds.
Ruto’s affordable housing units
The government planned to build 250,000 housing units every year to offset the two million deficit in the country.
Njeru noted that the Kenya Kwanza administration inherited five affordable housing projects, giving about 9,935 units.
He said the Kenya Kwanza administration has initiated over 38,000 units in the past year.
“President Ruto has launched 13 projects that will give to the market 38,237 units. We have in the pipeline another 14 projects, giving 32,950 units, that will be launched soon,” the CS added.
The CS added that the government works in collaboration with the county governments to spearhead its affordable housing project.
During the five-day tour of the Western region, the president launched the construction of a 220-unit affordable housing project at Milimani Estate in Lurambi, Kakamega county.
Kakamega County needs about 3000 units to address the crisis, and plans are already underway to put up more houses in four other estates in Lurambi and Mumias towns.
By TUKO