Housing Principal Secretary Charles Hinga provided a detailed explanation on how Kenyans can opt out of the proposed Housing Fund Levy and access their contributions. The levy requires employees to contribute 3% of their monthly salary, while employers match the contribution.

During a press briefing at State House, Hinga emphasized that the government encourages individuals to use the funds as deposits for new homes. However, for those who prefer to cash out, there will be a two-level exit process.

For employed individuals, the housing levy offers an attractive opportunity as their savings will be matched by their employers, effectively doubling their contributions. For instance, high earners contributing Ksh2,500 per month will have their employers top up an additional Ksh2,500. On average, many individuals will contribute Ksh1,000, which will double to Ksh2,000 with employer matching.

After seven years, high earners will have accumulated Ksh420,000, while the average Kenyan will have saved Ksh168,000.

Regarding the cash-out process, PS Hinga explained that if an individual chooses to exit the fund after seven years, they will only receive their portion of the contribution, while the employer's portion will remain in the Housing Fund. High earners will receive Ksh210,000, while the average Kenyan will receive Ksh84,000.

This approach ensures that the Housing Fund can meet its obligations and protect its capital. To access the remaining funds, employees will need to wait an additional seven years, totaling 14 years.

Exceptions to the 14-year waiting period include those who retire before the time lapses or individuals who pass away, as the benefits can be transferred to their next of kin.

PS Hinga highlighted that the government's affordable housing units will be priced 60% lower than those offered by private developers, making them more accessible to the public. Additionally, even individuals who are not formally employed will have the opportunity to participate by saving voluntarily.