Home News Kenyans to pay 200 shillings every month to the housing fund

Kenyans to pay 200 shillings every month to the housing fund

The state has proposed regulations that will make Kenyans pay 200 shillings to the National Housing Development Fund every month.

The changes are in the National Housing Development Fund Regulations 2020. The state plans to present it in parliament for adoption.

Initially, there was a proposal that all salaried workers contribute 1.5 percent of their gross salary to the housing fund. In the National Housing Development Fund Regulations, the government will not force salaried workers to give 1.5 percent of their gross pay. Instead, they will contribute 200 shillings.

“Every member shall contribute a minimum of two hundred shillings per month to the National Housing Development Fund, and the contributions shall be immediately credited to the member’s account as provided for under regulation 9,” the regulations read.

Death of a member

In case a member dies, the National Housing Development Fund will give his contributions to his dependants. The amount will include the interest that has accumulated over the years. However, the money will not be part of the estate of the deceased.

“Subject to any other written law, a benefit payable by the National Housing Development Fund upon the death of a member shall not form part of the assets in the estate of a member,” the proposed regulations read.


A few months ago, President Uhuru Kenyatta directed that the Ministry of Housing should make changes to the Housing Fund Levy.

The ‘Big Four Agenda’ aimed at providing at least 500,000 affordable houses to Kenyans before 2022 general elections. Unfortunately, the government is yet to implement it. Several court cases delayed the implementation of the plan.


Initially, the government was to deduct 1.5 percent of the salaries of Kenyans. The move would raise approximately 57 billion each year. However, several agencies opposed these deductions.

The Federation of Kenya Employer (FKE) claimed that the move would pressurize employers and consequently lead to job cuts. For this reason, the state made changes to the regulations.



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