President William Ruto has started doing business with our hard-earned money which we give him through the Housing Levy.
This was confirmed by Housing Principal Secretary Charles Hinga who justified the move by Ruto’s government to invest Housing Levy deductions in Treasury Bonds and Bills.
In response to concerns raised by Kenyans over the use of the money, Hinga noted that the investment was in line with the Affordable Housing Act.
He explained that the housing projects take time, a factor that would make the collection stay idle in the accounts.
Therefore, instead of the money staying idle, Hinga noted that investments in Treasury Bills would be prudent and beneficial owing to the interest earned.
“This is called liquidity management. Construction projects are long term some will take two years, you collect money today to pay a certificate in six months.
“The prudent thing is to invest extra liquidity, and earn interest,” the PS stated.
He also added that the interest would help the government undertake more housing projects.
“The Affordable Housing Act envisioned this and provided for mechanism to invest cash you don’t need today but might require in a few months.
“So, the funds are safe earning interest as we roll out more across the country,” he added.
The government collects funds for the affordable housing programme through the implosion of a 1.5 per cent levy on income earned by Kenyans in the formal and informal sectors.
Treasury Bills are short-term investment plans. Treasury Bills have maturities of 91 days, 182 days, and 364 days.
