Questions Emerge After Ruto Claims Affordable Housing Fund Has Raised Ksh1.2 Trillion

Jukwaa

🇰🇪 Breaking It Down

Speaking to Kenyans living in Finland on Thursday evening, Ruto asserted that the project, which has been the subject of intense public debate and legal battles, had mobilised enough resources to rival the country's budget deficit.

“That housing fund has generated investments of USD 9.3 billion. This is not money we have borrowed; this is our money,” Ruto told Kenyans in Helsinki.

He added, “If I were to get that money from the IMF or the World Bank, I would grow grey hair before I got it.”

📌 What You Need to Know

Ruto did not clarify whether the Ksh1.2 trillion includes projected investments, private sector financing commitments, or the total value of housing-related developments linked to the programme.

The President's remarks have, however, raised fresh questions about how the Ksh1.2 trillion figure was arrived at, with available public records showing substantially lower amounts collected through the Housing Levy since its introduction.

The State Department for Housing has previously maintained that available funding remains insufficient to fully finance the programme and has proposed raising additional capital through securitisation bonds backed by future Housing Levy proceeds.

The Affordable Housing Programme is primarily funded through allocations from the national budget and the mandatory Housing Levy deducted from workers' salaries.

Under the levy, employees contribute 1.5 per cent of their gross monthly salary, which is matched by employers. A worker earning a gross monthly salary of Ksh50,000 contributes Ksh750 each month towards the fund.

Available data indicates that the Kenya Revenue Authority (KRA) has collected approximately Ksh127.36 billion from the Housing Levy since the programme's inception in mid-2023.

📰 Source: Kenyans.co.ke

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