Advertise

Advertise

Uhuru low-cost home buyers to wait 5 years

President Uhuru Kenyatta.


Kenyans contributing to the Housing Development Fund will wait for five years before accessing their money to buy homes, newly-published regulations governing the fund say.
Contributors can use their savings as a deposit or security when negotiating for mortgages to buy the affordable houses, while low-income buyers can use the savings to negotiate tenant purchase schemes that eventually leave them as owners.
The regulations are expected to formally establish the fund and pave the way for the levying of 1.5 per cent of formal sector workers’ pay every month.
The deductions were to begin at the end of October, but lack of supporting regulations meant that they had to be pushed forward.
“Contributions by individuals shall only be accessed for purposes of offsetting housing loans, security for mortgage or housing development after five years of uninterrupted contribution,” the regulations say.
The waiting period means that some contributors may not access affordable houses until the end of President Uhuru Kenyatta’s term in office.

No comments

Translate