Kenya. Workers can now access pensions to buy house
Workers can now access up to Sh7 million or a maximum of 40 percent of their retirement savings to buy their first residential house after Treasury Secretary Ukur Yatani signed the amended regulations.
Pension schemes have until September 14, 2021 to amend their rules to allow their members early to access their savings for house purchase.
The law is meant to boost home ownership in a market where most people employed in the formal sector are unable to raise the deposit or afford the typical monthly mortgage payments.
“A member may utilise a portion of the member’s accrued benefits to purchase a residential house from an institution,” reads part of The Retirement Benefits (Mortgage Loans) (Amendment) Regulations, 2020.
“The portion available to a member for the purchase of a residential house at the time of the application shall be … an amount not exceeding forty percent of the member’s accrued benefits: Provided that such sum shall not exceed seven million shillings.”
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