AFFORDABLE HOUSING – Elimu Pedia https://elimupedia.com Number One portal for matters education, How to, TSC,KUCCPS, HELB,KRA , Top 10 bests,and Parenting. Tue, 14 Nov 2023 04:38:27 +0000 en-US hourly 1 https://wordpress.org/?v=6.0.9 BOM Teachers and Support Staff to Start Paying 1.5% Housing Levy in Latest KRA Order https://elimupedia.com/bom-teachers-and-support-staff-to-start-paying-1-5-housing-levy-in-latest-kra-order.html Tue, 14 Nov 2023 04:38:27 +0000 https://elimupedia.com/?p=13759 BOM Teachers and Support Staff to Start Paying 1.5% Housing Levy in Latest KRA Order

The Kenya Revenue Authority (KRA) is now after Principals and Headteachers who failed to remit 1.5% of their Board of Management (BOM) teachers and support staff monthly gross income towards the Housing fund since.

The tax collector now wants the school heads of both primary and secondary schools to ensure 1.5% housing levy is deducted from the teachers and support staff gross income each month.

KRA also wants those who failed to pay the levy to have their salaries chopped to pay the July,  August, September, and October arrears.

In one of the notices issued and seen by Teacher Arena, KRA demands 1.5% deducted from secondary school BOM employees and employers gross income with effect from 1st July 2023.

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“The levy will be deducted by employers from employees gross salary and be remitted to Kenya Revenue Authority together with the employers contribution,” read a notice to secondary school heads in Vihiga and Kakamega counties by KRA Department for Domestic Taxes.

Since the passing of the Finance Act, all employees are mandated to pay 1.5% of their gross income towards the housing fund.

Employers are also required to remit the same percentage towards the kitty to support their employees.

Many schools have BOM teachers to support the TSC teachers who are struggling with a huge teaching load resulting from acute teacher shortage.

Schools also have other employees to support in other areas. These include Watchmen, Cooks, Librarians, Bursar etc.

This means beginning January when schools reopen things may change for this category of employees who mostly are paid casually without payslips.

Schools are left with no other option but to deduct and remit the funds to KRA, However the big problem will be schools (employers)remitting the same amount to KRA as required.

KRA warned of consequences should school heads continue paying their staff without deducting and remitting the housing tax.

]]> Affordable Housing Mortgage Rolled Out By Mwalimu Sacco https://elimupedia.com/affordable-housing-mortgage-rolled-out-by-mwalimu-sacco.html Wed, 07 Jul 2021 06:21:35 +0000 https://elimupedia.com/?p=3732 Affordable Housing Mortgage Rolled Out By Mwalimu Sacco

In partnership with Kenya Mortgage Refinancing Company (KMRC), Mwalimu National Sacco has rolled out affordable housing mortgage scheme at competitive pricing.

According to the Sacco, the Board approved roll out of the product through a refinancing scheme for purchase of residential houses at Kisaju Park as phase one (1) of the implementation of mortgage lending solution to all the Sacco Members.

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Mortgage FEATURES

Features Description
Target market Mwalimu Members
Purpose of the loan Purchase of a Residential House,
Maximum Tenure Repayment period up to 25 years subject to borrower’s retirement age (maximum 60 years.)
Amounts

 

 • Minimum Ksh.500,OOO Maximum of up to Ksh. 4 million for developments around major cities and Ksh. 3 million for upcountry developments/Developments in rural areas

• Loan to Value (LTV) ratio is 90% + costs (costs covered by short term loans).

• Repayment period up to 25 years subject to borrower’s retirement age (maximum 60 years).

• This will be extended to borrowers with a monthly income of not more than Ksh15O.000. 
Interest Rate 9% per annum on reducing balance basis. This is equivalent to KMRC rate currently at 5% plus 4% margin totalling to 9%. Any change in the rate will be determined by KMRC rate and approval by MNS Board.
Negotiation fee 1 % one off
Insurance Property and life insurance cover by the borrower during the entire term of the mortgage. Incase of failure to renew the insurance policy, the SACCO Will renew and pass over the cost t e customer.
Valuation The property must be valued. and a valuation report submitted This property will be revalue after every three years, This will be done by Mwalimu National prequalified valuers.
Disbursement Mortgage disbursement shall be made upon completion of the security perfection and the member meeting all conditions set out in the letter of Offer.
Late payments Late payments will attract a penalty of 2% of the overdue amount.

Eligibility criteria for the housing mortgages

The eligible property to secure the loan must either be:

  1. Owner occupied.
  • Title residential properties
  • Free–standing or apartment .
  • Properties occupied by close relatives of owner.
  1. “The title must be free from any delinquencies and encumbrances.
  2. The maximum mortgage loan limit will be Ksh.4 Million.
  3. The tenure of the collateral: Full ownership and if Leasehold with a minimum of 40 years to expiry of the lease.

The New loan product takes effect immediately in all Mwalimu National FOSA branches through the Business Loans officers.

For more details visit www.mwalimuinational.coop and our FOSA branches countrywide.

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