Lands, Public Works Housing and Urban Development Cabinet Secretary Zachariah Njeru on Saturday, May 20, appeared before Senate Standing Committee to answer questions on the Affordable Housing Project.
At the committee, CS Njeru told Senators that employees were well protected under the programme and that none of them will lose during the implementation of the project.
Njeru, accompanied by his Principal Secretary Charles Hinga and senior staff, noted that the new Affordable Housing model was a solution for government employees and other Kenyans.
"CS Njeru however stressed that the deductions will not cause any loss to employees," read part of the report from the Parliamentary Communication Unit.
While re-affirming the government's position that employed citizens are well-placed to benefit from the Housing Project, Njeru stated the deductions will be made at the rate of 3 per cent of the employee's salary which will then be matched with another 3 per cent from the employer.
The Ministry of Housing explained that the majority of Kenyans were shunned by traditional home financing institutions because they lacked financial muscle.
"Moreover, the contributions to the housing fund will attract a return based on the fund's performance on an annual basis so on the exit of the fund, those who opt out would get a return for their savings.
"To ease the burden of saving and balancing monthly household needs, we provided for an affordable housing relief that allows for tax relief of Ksh8,000 per month as homebuyers save towards a home," Njeru stated.
The Committee chairman Senator Karungo Thang'wa sought clarification on the housing policy, the concept of the affordable housing program, the National Housing Fund, and the long-term housing finance scheme.
In response, CS Njeru explained that the housing policy has been in place since the 1990s, with the goal of providing housing access to the poor, promoting slum upgrading, researching low-cost building materials, and establishing a Housing Development Fund through budgetary allocations and support from development partners.
"I am happy to report that to date the portal has registered 300,000 members who have voluntarily saved over Ksh2 billion.
"The housing fund will seek to offer participants in the scheme financing with tenures between 20 and 30 years, targeting interest rates between 3 per cent and 7 per cent," Njeru added.
