President William Ruto now says the government had initially planned to fund the Affordable Housing Programme using borrowed funds before his administration introduced the 1.5 per cent housing levy.

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Speaking at State House in Nairobi on Tuesday, June 30, Ruto said efforts to secure loans from various financiers failed because the model was neither practical nor sustainable, prompting the government to turn to salaried Kenyans to fund the programme.

"We decided as Kenyans that we are going to get rid of slums. We decided that we are going to work towards getting rid of slums and that we are going to build a big portfolio of a housing programme," Ruto said.

"It has been in our books for many years. We tried to borrow money from many places to implement the programme, and it was not possible. It was not tenable, it was not practical and it was not sustainable."

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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.

📰 Source: Kenyans.co.ke