Workers have been spared a pay cut of up to Sh5,000 after MPs shot down a Treasury’s proposal to create a fund to finance a new low-cost housing fund. The Treasury had set the low-cost housing deduction at 0.5 per cent of the gross pay per month as long as the contribution does not exceed Sh5,000. Employers were to match the employees’ contribution. The MPs said the move would cause significant cost burden to companies while hurting workers.
The State Department of Housing announced two months ago that it was finalising regulations to operationalise the housing development fund, whose finer details are yet to be released.
