Ruto Announces Mandatory Salary Deduction for All Govt Employees

President William Ruto addresses a conference in Nairobi on April 11, 2023.
President William Ruto addresses a conference in Nairobi on April 11, 2023.
PCS

President William Ruto, on Sunday, April 23, announced that all civil servants would be deducted 3 per cent of their salary that will be contributed towards the Housing Fund.

Ruto, attending Church service at Friends Church (Quakers) in Donholm, Nairobi, stated that the deductions will aid Kenyans in accessing affordable housing. He, however, did not disclose when the deductions will take effect.   

"Every Kenyan will be able to contribute 3 per cent of their salary towards affordable housing. For every 3 per cent someone saves, the employer will be required by law to save an extra 3 per cent.

"As a government, we will be at the forefront in implementing this. For all employees of the government - approximately 700,000 - we will be saving 3 per cent for them after they have made their own 3 per cent contribution," the President announced.

President William Ruto (left) shakes hands with Nairobi Governor Johnson Sakaja during a  Church service at Friends Church (Quakers) in Donholm, Nairobi County on Sunday, April 23, 2023.
President William Ruto (left) shakes hands with Nairobi Governor Johnson Sakaja during a Church service at Friends Church (Quakers) in Donholm, Nairobi County on Sunday, April 23, 2023.
Photo
PSC

On why civil servants will have to make the contributions, Ruto explained, "So that we can create a fund that will assist people of Kenya to acquire homes."

The Head of State added that Kenya currently only had 40,000 mortgages and that his administration would raise that amount to 2 million in line with the country's economy.

Ruto's government further aims to construct over 200,000 affordable housing units by 2027 to benefit 2-3 million households.

The President announced that the government had already constructed 30,000 affordable housing units in Nairobi. 

"In the next two weeks, I will be in Makongeni to start construction of an extra 30,000 units. We have a plan to be constructing 100,000 affordable houses every year in Nairobi," he promised.

President Ruto further revealed that he was elated by the increased National Social Security Fund (NSSF) monthly contributions.

"I am happy that we did away with the law that required Kenyans to contribute Ksh200 towards NSSF. Starting two months ago, contributions are pegged at 6 per cent of everyone's salary," the President stated.

Like the proposed Housing Fund, Ruto revealed that employers were also mandated to contribute 6 per cent of their employee's salary towards NSSF kitty.

"Let me give you good news, in just two months, we have doubled the money we are saving as a country. I want to promise you that we will create a big kitty that we will not have to borrow externally," Ruto explained his vision for the NSSF kitty.

The President announced that every time the government borrows from the NSSF kitty, it would repay with interest, growing the fund more.

President William Ruto (right) shakes hands with Prime Cabinet Secretary Musalia Mudavadi during a Church service at Friends Church (Quakers) in Donholm, Nairobi County on Sunday, April 23, 2023.
President William Ruto (right) shakes hands with Prime Cabinet Secretary Musalia Mudavadi during a Church service at Friends Church (Quakers) in Donholm, Nairobi County on Sunday, April 23, 2023.
PCS