Uproar as the government reveals why you will still pay rent despite contributing 3% to RUTO’s Housing Fund – Hapa Tunachezwa!

 

Friday, May 19, 2023 – You will still pay rent even after contributing 3% to President William Ruto’s housing project.

This was revealed by Housing Principal Secretary Charles Hinga who explained that Kenyans would still be required to take mortgages for houses built under the Housing Fund despite the 3% deductions.

Speaking during an interview, Hinga explained that the monthly contribution of the 3% was savings that the government would use as capital to buy houses from investors.

He noted that most Kenyans would contribute Ksh84,000 for seven years, with the government estimating to collect Ksh9 billion monthly for the fund.

After the government buys the houses from investors, the PS indicated that contributors will then enter a mortgage agreement with the government with options for monthly rent.

“After the investor builds the house, I buy it from them, then I can give it to the Kenyan at the interest rate of 5%.”

“Once you enter that house, we will enter a contract with you. 

“If you were paying a rent of Ksh5,000, you enter into this scheme where you pay the same amount for 30 years and the house becomes yours,” he stated.

The PS maintained that the scheme was beneficial given that Kenyans would normally not own homes despite paying their landlords rent for the same period.

On the other hand, he noted that the monthly contributions would enable the government to undertake affordable housing projects nationwide.

He allayed fears that the houses would be expensive even as he underlined that the government would give investors land for free.

The 3% deduction which is contained in the controversial Finance Bill 2023 has elicited a huge debate with the majority of Kenyans rejecting it.