320,000 Kenyans Seeking to Own Affordable Houses Save Sh1.3 Billion

322,422 Kenyans have registered on the State-run Boma Yangu housing portal in anticipation of owning houses under the government’s affordable housing project.

Housing and Urban Planning Principal Secretary Charles Hinga said the registered aspiring homeowners have so far saved nearly Sh1.3 billion.

The number is more than 10 times the outstanding mortgage loans advanced by all Kenyan banks, which stands at below 30,000. 

“This service is open to individuals applying for home allocation, employers, property developers, and financial institutions registered and operating in the Republic of Kenya,” said Hinga.

Hinga, who spoke during a ceremony to mark the start of construction of 284 housing units in Kasarani by the real estate subsidiary of Centum Investment, said most of the Kenyans who have registered on Boma Yangu hope to own homes before getting into retirement.

To register on the Boma Yangu portal, one must be a Kenyan citizen aged 18 and above years. They are required to submit their personal details and choose their preferred houses.

Upon registration, an applicant is allocated a unique identification number that they use to make monthly contributions to the Housing Fund.

One can choose any of the three schemes namely statutory, voluntary and joint contribution. Statutory contributions are mandatory and are limited to Sh2,500 per employee and employer.

Contributors on a voluntary basis can send as much money as they wish and their contributions are not taxed at the time of withdrawal. Couples can also contribute jointly towards ownership.

“Members can access these contributions 15 years after their first contribution or when they attain retirement age,” said Hinga.

He added: “Those who do not get a house allocation in the initial distribution will be put on a waiting list so that they are prioritized in subsequent allocations. Allocation will start as soon as the construction of the houses begins, and will be free of any human intervention and contact to ensure that transparency is upheld.”

The PS indicated that there are 11 affordable housing projects currently under construction around the country.