Salaried Kenyans have been urged to brace for continued deduction of the Housing Levy as the government unveils plans to finance additional projects using the statutory contributions.
Speaking on Wednesday morning at the Tom Mboya University in Homa Bay, President William Ruto acknowledged receiving numerous concerns from Kenyans regarding the statutory deductions, which he said were necessary for the country's benefit.
Ruto assured Kenyans that the funds would be used responsibly to accomplish key government initiatives, including the construction of affordable houses and markets.
He noted that the funds will not only be used to construct affordable houses but also drive a wider infrastructure development in the country, adding that part of the money would be used to construct student hostels.
"Many people have been asking me about the housing levy and the housing fund, which is the transformation that the housing levy and the housing fund will bring to us as a nation," Ruto said.
Adding, "Apart from building affordable houses, we are also building 400 new markets across Kenya, and now we are turning the housing infrastructure into student accommodation."
While announcing the government's intention to build new student accommodation at universities and colleges across the country, Ruto expressed confidence in the project.
He revealed that many students were living in insecure areas far from their schools, which posed a risk to their lives and property.
"So, to Kenyans, many of our young men and women in TVETs and universities live in dangerous places; we want them to learn in an environment where they are focused and where they do not face any insecurity," the Head of State announced.
"That is the reason why we are building infrastructure in all our universities and colleges progressively. Because of the success we have seen in affordable housing, I am sure we are also going to succeed in student accommodation," he added.
The Housing Levy, introduced by the government through the Finance Act of 2023, was initially slated for the construction of affordable houses for lower-income-earning Kenyans.
However, since its implementation, the levy has faced numerous criticisms and setbacks from Kenyans, including legal battles that in 2024 forced the government to make amendments to the statutory deduction.
