According to him, the government then opted to establish the Affordable Housing Fund, requiring employees to contribute 1.5 per cent of their monthly salaries, with employers matching the same amount.
Ruto said the decision has enabled the country to mobilise massive resources, eliminating the need to rely on foreign borrowing for the housing project.
He disclosed that since the introduction of the housing levy, his administration has collected up to Ksh1.2 trillion to fund the affordable housing programme.
“We decided that we are going to put together a housing fund and we are going to pay 1.5 per cent of our incomes to that fund and employers would do the same. In three years, we have built a portfolio of Ksh1.2 trillion in our own resources,” he stated.
Ruto’s remarks come even as the Ministry of Lands and Housing continues to roll out housing projects under the Boma Yangu initiative in several counties.
The programme allows Kenyans to reserve homes with a five per cent deposit before paying through outright purchase, tenant purchase arrangements or mortgage financing.
Under the affordable housing programme, Kenyans from various regions can own studio apartments, one-bedroom, two-bedroom and three-bedroom units for different income categories.
The housing levy, which came into effect in 2024 after Parliament enacted a new law following a court battle over the earlier legislation, has remained one of the government’s most debated policies.
