NHC set to receive Ksh10 billion housing levy

The National Housing Corporation (NHC) is set to receive Ksh10 billion from the housing fund.

This was after the State Department for Housing started allocating funds for the housing levy to facilitate the construction of affordable houses.

As a result, NHC is set to be among the first recipients of the housing levy that is deducted from workers at the rate of 1.5 percent, with a similar amount contributed by the employers.

Buxton Point, an affordable housing project. NHC is set to receive Ksh10 billion from the housing fund to help establish more units. Photo: Courtesy

NHC has been instructed to lay ground for affordable houses for a budget of Ksh10 billion.

“We have received a letter from the State Department of Housing which has committed an initial Ksh10 billion to the corporation for purposes of facilitating the implementation of affordable housing programme,” said NHC managing director David Mathu.

Mathu told Business Daily that the funds will assist NHC in launching affordable housing projects in several counties.

This was after the housing levy was made mandatory to all employees as from July 2023, after the enactment of the Finance Act 2023.

The housing levy was aimed at helping the government collect funds towards the affordable housing project.

According to reports from the Treasury, the government is expecting to collect Ksh63.2 billion from the housing levy in the current financial year.

Additionally, the government has projected the amount to increase to Ksh70 billion in 2024/25 and Ksh78 billion in the 2025/26 financial year.

President Ruto’s government had planned to construct approximately 250,000 affordable houses across the country annually.