This archive report was first published on 21 May 2020.
May 21, 2020 - In a bid to make homeownership more accessible to Kenyans, the State Department for Housing and Urban Development has clarified that the Sh200 monthly contribution to own a home is voluntary, not mandatory.
According to the department, any Kenyan of all walks of life can register for the scheme and contribute either in lump sum or the prescribed minimum of Sh200 per month. However, to qualify for a house, a member must have contributed at least 10% of the house's price.
So far, 296,026 Kenyans have registered for the Boma Yangu platform, which allows them to start their journey towards owning a home. To register, applicants must be citizens of Kenya, above 18 years old, and have a valid national identity card.
Upon registration, a member is allocated a unique identification number, which they use to make their monthly contribution to the Housing Fund. The contribution schemes are categorized into three: statutory contributor, voluntary contributor, and joint contributor.
Contributions can be accessed on the sooner of 15 years after a member's first contribution or the attainment of retirement age. Allocation of houses to qualified applicants commences immediately once the construction of affordable houses begins.
President Uhuru Kenyatta's big four agenda aims to construct close to 500,000 homes by the end of 2022. Treasury Cabinet Secretary Ukur Yattani earlier revealed that Sh5 billion had been set aside to fund the project during the current financial year.
