How to own a house under government’s affordable housing program

In the proposal, Kenyans will give a 1.5% mandatory contribution of their monthly salaries to the government with their employees contributing the same amount.

President William Ruto has said that the ambitious plan, seeking to build 200,000 units a year, will aid in creating jobs for the Kenyan youth and create a steady cash flow in the economy.

He has also censured those trying to befoul the contribution proposal, noting that there is a need to lift Kenyans at the bottom of the economic pyramid.

In a statement dated March 2023, the Ministry of Lands, Public Works, Housing, and Urban Development said once the money is contributed and collected by the Kenya Revenue Authority (KRA), it is stored in a consolidated account and will later be used to pay developers who will have signed project agreements with the government and delivered the developments.

The developers have limitations on the number of units they can build but have the freedom of choosing where they will erect the developments.

The projects will have three main unit typologies among them 1 bedroom (20/30 m2), 2 bedroom (40 m2) and 3 bedroom (60 m2) and will be sold at Ksh.50,000 per square meters.

To secure a unit, one will need to pay a 10% deposit of the total amount.

The statement further shows that the national tenant purchase scheme will have tenants pay Ksh.5,000 for one-bedroom units, Ksh.10,000 for 2 bedroom units and Kh.15,000 for 3 bedroom units.

To facilitate a well-structured framework on allocating mortgages to Kenyans the government will use the Boma Yangu platform, a government initiative that offers affordable housing services to low and middle-income households.

How the platform works

Interested homeowners can only access the Boma Yangu portal through registration on the portal itself or through the *832# USSD. Registration is free but one is required to have an eCitizen account.

One is also needed to complete their profile by submitting their personal details, and housing preferences and then have their details verified by the relevant government agencies. 

An applicant must have a National ID, be a Kenyan Citizen and be 18 years of age and above.

The applicant is then needed to deposit a minimum of Ksh.200 to have their account activated and can afterward save any amount at their convenience through different payment options. 

The options include mobile money across all networks, Credit and debit cards, or cash deposit at any of the authorized custodial banks (KCB, NCBA and Cooperative bank)

As a registered and saving member, one can view all the available projects on Boma Yangu and add their preferred units to their wishlist.

Selecting a preferred unit will also show details on how much deposit one would be required to save to be eligible for allocation (10% of the unit value.)

Refunds on savings will be in accordance with the housing fund regulations and can be requested through this portal. 

Upon the completion of the projects registered members are notified when the allocation process commences.

A few factors will determine the eligibility of an individual for them to be allocated a unit. Among the factors is one's family status and other social factors, the demand across various housing categories and whether they have reached the deposit amount required.

Persons who fail to secure a unit in the first selection will be put on a waiting list and will be prioritized in the second selection.

It is also worth noting that Kenyans will only benefit once from the programme.

The government says that so far over 300,000 Kenyans have registered on the platform with 30,000 being active savers.

Over 200 partner applicants have also onboarded the housing project and 400 projects are already in the pipeline.