TSC to deduct 3 percent

TSC to deduct 3 percent Housing Fund


TSC will start withholding 3% of the housing fund from each month’s salaries.


After the 2007 Employment Act was amended to permit instant deduction from employee salaries, teachers and civil servants may soon have housing fund deductions taken out of their paychecks.

Clause 76 reads “76. The Employment Act, 2007 is amended by inserting the following new section immediately after section 31A-31B 1) An employer shall pay to the National Housing Development Fund established under section 7 of the Housing Act, in respect of each employee-


(a) the employers contribution at three per centum of the employees monthly basic salary.

The government is aiming to raise additional money through deductions in the Finance Bill, 2023, which contains tax measures for the 2023–2024 fiscal year.

TSC to deduct 3 percent

According to President William Ruto, the donation will assist teachers and government employees in purchasing homes constructed as part of the Affordable Housing Programme.


Kenyans, according to him, will make monthly contributions.


We have a housing fund to which we want every Kenyan to contribute 3% of their income in order to enable many Kenyans to purchase homes under the affordable housing scheme. If you make Sh10,000, 3 percent, or Sh300, goes toward the fund each month, according to Ruto.

“Every employee who saves 3 percent with the Housing Fund, the law will require their employer to also save 3 per cent,” Ruto said

The President stated that the nation’s almost 700,000 public employees will be the first to begin saving through the Housing Fund.


Every civil servant who saves 3% of their income would receive 3% of their monthly salary from the government, according to Ruto, “so that we can establish a fund that will help the people of Kenya acquire homes.”


The President also noted that there are presently only 40,000 mortgages in the nation, despite the fact that there should be up to 2 million in order to reflect the size of the economy.


According to Ruto, a large number of Kenyans reside in unofficial settlements and require an improvement in the standard of their homes.

TSC to deduct 3%

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