This archive report was first published on 1 August 2019.
Affordable Housing Programme: A New Era for Kenyan Homeowners ¶
Launched in January 2019, the Affordable Housing Programme (AHP) is a government-driven initiative aimed at providing affordable and decent housing for Kenyans in the low and middle-income brackets.
The programme, christened Boma Yangu, is part of the government's Big Four Agenda and seeks to address the country's 2 million housing deficit, which continues to grow at a rate of about 200,000 units every year, according to the World Bank.
The first 228 Kenyans who signed up for the programme will occupy their new homes in October 2019, with the units located in Ngara, Nairobi. The initiative is bankrolled and constructed by private entities on government and private land in all 47 counties.
Government Spokesperson Col (Rtd) Cyrus Oguna said the houses will be handed over to the government for onward allocation to the owners in October 2019, using a ballot system to ensure fairness and transparency.
The Ngara project, financed and developed by a Chinese developer to the tune of Sh5 billion, will deliver a total of 1,370 one, two, and three-bedroom houses. All the units at the Ngara site are expected to be completed by February 2021.
Already, about 250,000 Kenyans have signed up for the programme, but only approximately 15,000 Kenyans have made payments towards the houses, totalling Sh10 million. The minimum one can contribute is Sh200, but this must sum up to Sh2,500 in monthly contributions.
Col Oguna explained that the payment period is 25 years, and contributions to the Housing Fund can be accessed 15 years after a member's first contribution or on attainment of retirement age, whichever comes first.
“If you do not get allocated a house and you've been contributing, and you want to opt out of the programme, then you'll get a full refund plus interest at the going market rate from the custodian bank, KCB, after 15 years or upon retirement,” clarified Col. Oguna.
The programme targets four income brackets, including social housing for those earning below Sh20,000, low-cost housing for those earning between Sh20,000 and Sh50,000, mortgage gap for those who earn between Sh50,000 and Sh149,000, and mid to high-income earners category of Sh150,000 and above.
The pricing of the houses varies, with single rooms sold for Sh600,000, two-room units going for Sh1 million, and three-room units priced at Sh1.35 million. The government will also break ground for another project by the United Nations Office of Projects Services (UNOPS) at Lukenya in Athi River, with at least 100,000 units to be put up.
