The Committee shall meet at least four times in a year.

The officer administering the Fund shall be the chairman of the Committee.

The officer in charge of the Fund Secretariat shall be the Secretary to the Committee.

The quorum for a meeting of the Committee shall be the chairman and three other members.

The decision of the Committee shall be by simple majority and in the case of a tie, the chairman shall have a casting vote.

A loan for development of residential property shall be granted at the discretion of the Committee to a civil servant who is in possession of a title deed to the land on which the development is to be carried out.

The funds that may be loaned to a civil servant under these Regulations shall be as provided in the Schedule.

The Cabinet Secretary, in consultation with the Committee, may from time to time vary the maximum funds that may be loaned to a civil servant under these Regulations.

A loan granted for the development of residential property, shall be released to the borrower in phases in accordance with subregulations (2) and (3) of this regulation.

The subsequent disbursements shall be based on the rate of completion of the various phases of development as certified by a valuer, registered as such under the Valuers Act (Cap. 532), at the cost of the borrower.

A civil servant who wishes to apply for a loan from the Fund shall make such application to the officer administering the Fund in such manner as the Committee may prescribe.

An applicant under this regulation shall meet any other condition imposed by the Committee under these Regulations.

The balance over and above the maximum loan amount under regulation 7A and all other monies payable including stamp duty, transfer fees and other related charges shall be paid by the borrower.

The borrower shall be required to deposit the balance under paragraph (3) with the Fund together with all monies payable as stamp duty and other legal fees.

The Committee may, where it deems appropriate, appoint an advocate to act on his behalf in respect of transactions relating to the property under these Regulations.

A loan granted under these Regulations shall be repayable within a period of twenty years or before the loanee attains the age of sixty years, whichever is earlier.

A borrower may give prior authority in writing for his pension dues to be utilised to clear any outstanding debt in case he retires before repaying the loan.

Where the property is developed by the Fund for the purposes of tenant purchase, the borrower shall pay a deposit of ten percentum of the value of the property and shall subject to paragraph (4) be granted a loan of the remaining ninety percentum to be repaid monthly and in accordance with these Regulations.

The loan granted to a borrower under paragraph (3) shall not exceed the maximum loan under regulation 7A.

The interest rate payable on a loan under these Regulations shall be a minimum of three percent and a maximum of five percent per annum on a monthly reducing balance inclusive of administration costs.

The interest charged under this regulation shall be paid by the borrower.

The Fund, tenant purchase institution or mortgage finance company as the case may be, may utilise not more than two decimal five per centum of the interest charged under paragraph (1) to cover its management costs.

All residential properties purchased or developed through the Fund shall be constructed of such standards and material as being acceptable and to which the Committee may approve.

All legal documentation and disbursement of funds shall be supervised by the officer administrating the Fund.

A civil servant covered under any other public funded scheme shall not be eligible to benefit from the Fund.

A civil servant occupying a Government house who is granted a loan under these Regulations shall, within six months of such grant, vacate the Government house.

Every borrower shall take and maintain a life insurance policy and a fire insurance policy with an insurance company approved by the Committee, whose cost shall be paid out of the Fund, as group cover, and debited in the borrower's account.

Every beneficiary of a house under construction by the Fund shall take a mortgage protection cover for the provisional sale price of the property.

Where a borrower who has benefited from sale of a house constructed through the Fund defaults in repayment of the loan for a period of three consecutive months, the Committee shall repossess and sell the property to another deserving civil servant.

Where a borrower leaves service, the borrower shall continue to service the loan at the same terms and conditions as set out in these Regulations, provided that where the borrower defaults for a period of four months in repayment, the interest shall be converted to prevailing commercial rates.

Notwithstanding these Regulations, where a borrower leaves service on disciplinary grounds or resigns before serving for a period of ten years, the Committee may grant the borrower a maximum period of four months to repay the full outstanding loan or permit the borrower to repay the outstanding loan at the prevailing market rate and on such other terms and conditions as the Committee may from time to time prescribe.

Where the commercial rates are applicable and the borrower is in default for a period of four months, the Fund may call in the loan and sell the charged property by public auction or private treaty.

The Housing Fund established under section 6(1) of the Act shall be an affordable housing scheme for the purposes of section 30A of the Income Tax Act (Cap. 470).

Every employer who, under a contract of service, employs one employee or more shall register with the Housing Fund as a contributing employer and shall register his or her employee or employees as members of the Housing Fund.

Every employee who is under a contract of service shall register with the Housing Fund as a contributing employee, unless that employee is a foreigner working in Kenya.

Without prejudice to the provisions of paragraph (1), a self-employed person who wishes to become a member of the Housing Fund may register as a voluntary member.

Any person who fails, neglects or refuses to register under this regulation commits an offence and shall, upon conviction, be liable to imprisonment for a term of two years or to a fine not exceeding ten thousand shillings or to both.

Any employer who fails, neglects or refuses to make a contribution under this regulation commits an offence and shall, upon conviction, be liable to imprisonment for a term of two years or to a fine not exceeding ten thousand shillings or to both.

A person who violates any of the provisions of paragraph (1) commits an offence and shall, upon conviction, be liable to imprisonment for a term of two years or to a fine not exceeding ten thousand shillings or to both.

The contributions made under paragraph (1) shall be paid into the Housing Fund as provided for. under section 31A of the Employment Act (Cap. 226) and immediately credited to the member's individual account as the Housing Fund Account provided for under regulation 9.

Contributions shall be paid directly to a designated Housing Fund Account as may be specified by the Corporation.

The Housing Fund shall notify the member of the receipt of the contribution as soon as the contribution is received.

The Corporation shall cause to be established and maintained for each member of the Housing Fund, an individual account to be known as the member’s Housing Fund Account to which shall be credited all contributions made to the Housing Fund by and in respect of each member of the Housing Fund.

Each member shall receive from the Housing Fund, at the end of every financial year, an annual benefit statement indicating the summary of the member's Housing Fund Account.

Notwithstanding the provisions of paragraph (3), a member may, upon giving sufficient written notice to the Housing Fund, obtain a benefit statement.

Where the Housing Fund has availed the information herein required online, a member may obtain the same online information and the Housing Fund shall ensure that the information online is up to date and sufficient for purposes of getting the information required under this regulation.

Where the information required cannot be obtained or a member is incapacitated to access the information electronically, the Housing Fund shall give general notice to members informing them to access the information from the Housing Fund manually at specified offices situated in locations convenient to the members.

Where it is established by a member or officer of the Fund to the satisfaction of the Corporation that any amount has been paid to the Fund as a contribution when it was not payable under these Regulations and the amount was paid as a result of a bona fide error, the amount paid in error shall be refunded without interest thereon or may be applied, with the consent of the person who made the payment, to any current liability of that person to the Fund.

Any amount which is payable as a contribution by an employer in respect of himself or herself or his or her employee that is in excess of the statutory contribution payable under the relevant law or these Regulations for any period, the amount in excess shall be refunded to the employer or employee, as the case may be, within three months and without interest thereon or may be applied, with the consent of the employer or employee, to any current liability or future obligation of the employer or employee to the Housing Fund.

Where excess contributions are to be applied to any current or future obligations, they shall be applied immediately the consent of the employer or employee is obtained.

Subject to regulation 14, a member shall qualify for a loan for affordable housing if that member meets the criteria set out in these Regulations and guidelines by the Corporation.

A person who wishes to be granted a loan from the Housing Fund shall make an application to the Corporation in such a manner as may be specified by the Corporation.

A loan approved by the Corporation under these Regulations shall be released from the Housing Fund to the Individual Housing Fund Account.

All legal documentation and disbursement of funds shall be with the Corporation.

Every person entitled to become a member of the Housing Fund shall furnish to the Housing Fund, in the manner specified, particulars concerning himself or herself and his or her dependants who shall receive benefits upon his or her death.

A member of the Housing Fund shall update his or her nomination under paragraph (1) at any time and, in any event, annually and the revised nomination shall be submitted to the Housing Fund.

A member's nomination under this regulation shall be regarded by the Corporation to be his or her absolute intention and the Corporation shall not be responsible for any errors of omission or inclusion contained in the nomination.

Where a person has been validly nominated under this regulation, the Corporation may decline to pay or vary the nominated beneficiary and shall furnish in writing its reasons thereof.

A deceased member's contribution shall be paid to the dependants, if the member dies and was contributing to the Fund at the time of his or her death.

The deceased member's contribution payable under paragraph (1) shall, in aggregate, be equal in value to the member's Housing Fund Account and interest accrued.

The deceased member's contribution payable under paragraph (2) shall be held by the Corporation on trust, and paid to the nominated beneficiary upon application by the beneficiaries in such proportions as stipulated by the member for the absolute use and benefit of the beneficiary.

Despite the provisions of paragraph (3), the Corporation may exercise its option under regulation 20(4) with regard to any nomination under this regulation.

Subject to any other written law, a benefit payable by the Fund upon the death of a member shall not form part of the assets in the estate of a member.