William Ruto Explains Reasons for Relocating Affordable Housing Projects to Rural Areas

• President William Ruto emphasized the importance of expanding affordable housing to rural areas, highlighting that Kenya is experiencing rapid urbanization and land fragmentation.
• Ruto said the affordable housing program created 164,000 jobs last year and aims to deliver 200,000 housing units annually.
• The President announced the completion of 4,888 houses in 21 projects in 24 districts and invited Kenyans aged 18 and above to apply

Muyela Roberto a business Journalist with over 9 years of experience in digital media at TUKO.co.ke offers in-depth insights on Kenyan and global economic trends.

Minister William Ruto He leveled harsh criticism at those who criticized the affordable housing project and those who constantly blamed him for initiating such projects in rural areas.

Affordable housing in rural areas is a solution to urbanization

Critics argue that housing projects in rural areas may not be commercially viable because most residents already own homes and may not necessarily be housed in affordable housing facilities.

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Speaking in his State of the Nation speech in parliament on Thursday (November 21), Ruto defended his administration’s decision, citing Kenya’s rapidly urbanizing counties and the urgent need for planned development to address future challenges.

“There is a wealth of data predicting not only that the future of all humanity is urban, but that Africa has the fastest rate of urbanization. Kenya is no exception and in fact many of our counties are rapidly urbanising.

We have an appointment with an urban future and the only choice we have is what that urban future will look like,” Ruto said.

The President emphasized that Kenya is struggling with a significant housing deficit and that many Kenyans cannot afford decent homes.

He argued that the situation was forcing people to make difficult choices between enduring long journeys or living in unhealthy and unsafe environments.

Job creation and housing targets

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Ruto added that the affordable housing project aims to build 200,000 houses a year for 10 years to bridge the housing gap.

According to him, the program is not limited to urban centers only but also extends to rural areas where land sizes are shrinking due to population growth.

“In order to protect agriculture and food security from the effects of uncontrolled land fragmentation, urbanization must be planned and controlled. “The affordable housing program is a vital component of integrated land use planning and development,” the president explained.

Ruto also outlined the economic impact of the project, noting that affordable housing has increased demand for services ranging from bricklayers to electricians, architects to engineers. He explained that the initiative has already created 164,000 jobs. works last year.

“Affordable housing is also a huge opportunity for manufacturers, developers and other industries. “Its economic support is important and undeniably needed,” he said.

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The President announced the completion of 4,888 homes in 21 projects in 24 counties and invited Kenyans aged 18 and above to apply under a transparent allocation process.

“This program is about justice; One identity, one home. I encourage every Kenyan to visit the developments, see the show homes and take a step towards home ownership,” Ruto concluded.

Legal reforms and tax relief for housing tax contributions

Affordable Housing Project It had faced many legal challenges, one of which was the lack of a proper legal framework. A court had previously declared interference unfair and unconstitutional.

However, President William Ruto quickly addressed this issue by signing the Affordable Housing Act 2024 and recently the courts upheld its constitutionality.

The law requires each employer to contribute 1.5% of the employee’s gross monthly salary to Housing Tax. Similarly, employees are required to contribute 1.5%, which is 3% of the gross monthly salary.

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In recently proposed tax change laws, the National Treasury aims to deduct Housing Tax contributions and NHIF payments from gross wages before the income is taxed.

According to the Secretary of the Treasury John MbadiThis move is expected to provide payroll relief for employees and reduce general income tax.

Source: TUKO.co.ke