Under the scheme, both the employer and employee shall each contribute 1.5 per cent of the employee’s monthly basic salary, if the sum of the total monthly contributions shall not exceed Sh5000. Voluntary contributions may also be made to the scheme at a minimum of two hundred shillings per month. Every formal worker is expected to contribute to the Government's ambitious plan to build 500,000 houses by 2022 with 1.5 per cent of their gross salary. It has also emerged that Kenyans will contribute money for at least five years before getting access to low-cost houses. After contributing without fail to the proposed National Housing Development Fund for that period, employees will qualify to get funds for a mortgage at 7 per cent annual interest rate, according to draft regulations.

Source: Standard Digital April 16, 2019 06:04 UTC