Charles Hinga, the Principal Secretary of Housing, shed light on the plans and contribution framework for the Affordable Housing Project on May 24. In a media briefing at State Housing, Hinga clarified that individuals intending to withdraw their savings from the project would only be able to do so after seven years of contribution, and they would not receive the full amount in their accounts.

Hinga explained that a portion of the contribution would remain in the account to protect the fund against potential financial risks. The employer's portion of the contribution would specifically safeguard the capital of the fund, ensuring its stability and ability to meet any fund obligations.

"If you want to withdraw your money, you will only be able to take your portion of personal contribution after seven years. However, your employer's money will remain in the kitty. The employer's portion is the one that protects the capital of the fund so that if there are obligations of the fund, then we will keep that kind of money," stated Hinga.

Regarding the mandatory housing levy contribution outlined in the Finance Bill of 2023, Hinga emphasized that it would serve as assurance to investors interested in participating in the construction of housing projects. The funds collected would provide confidence to investors and enable the government to offer land at no cost, encouraging the mass construction of houses for Kenyans.

"The highest-earning Kenyans will only pay Ksh2,500, the majority will pay Ksh1,000 and below. So when we put this all together as a country, we will be able to go out to the market and tell investors that the government is providing land at no cost for Kenyans to own homes, build houses in mass, give me the keys and go. If I don't have the housing fund, they will refuse to build," explained Hinga.

Hinga assured Kenyans that approximately Ksh1 billion would be collected monthly, which would further instill confidence in investors. He highlighted the importance of having an offtake plan to reassure investors of the return on their investments.

However, economist Brian Wachira offered his perspective, stating that the government's goal of addressing the 2.5 million housing deficit would require exploring various options and terms before implementing the levy.

"While some support the levy as a necessary step to tackle the country's housing crisis, others oppose it, viewing it as a burden on the poor and ineffective in solving the housing problem. What is clear is that the government is imposing this matter on many people," Wachira commented.

Wachira noted that the government seemed to have drawn inspiration from countries like Singapore, Mexico, Brazil, Nigeria, and China when formulating the proposal. However, he also expressed concerns about certain aspects of the proposal that could make it challenging for citizens to benefit from the program. Wachira particularly highlighted the unrealistic nature of waiting for 14 years to access one's savings and emphasized the need for effective communication and consideration of citizens' perspectives when introducing such policies.