Kenyans hoping to own affordable houses could soon enjoy a significant relief, with the government planning to reduce the required deposit from 10% to 5%.
The proposed move was revealed during a meeting between the National Assembly Departmental Committee on Housing, Urban Planning and Public Works and officials from the State Department for Housing and Urban Development, led by Principal Secretary Charles Hinga.
PS Hinga confirmed that the plan to reduce the deposit, which was recommended by officials from the Central Organization of Trade Unions (COTU) and presented to President William Ruto, is now at the final stage of implementation.
He urged low-income earners to take advantage of the opportunity by applying for housing units under the Boma Yangu Housing Programme.
“I hereby ask Kenyans to utilise this chance to become homeowners,” said PS Hinga.
The meeting focused on how to strengthen and fast-track the Affordable Housing Programme, with the Committee aiming to align policies that improve living standards, spur economic growth, and reduce homelessness.
Emurua Dikirr MP Johana Ng’eno, who chairs the Committee, questioned the use of funds generated from the sale of completed affordable houses. He asked PS Hinga to clarify how proceeds from projects like Park Road are being spent.
“You said that Park Road proceeds were used to build Homabay Affordable Houses. Where will Homabay proceeds go?” Ng’eno asked.
Other issues raised by MPs included how completed houses are maintained, the criteria used to allocate houses, the quality standards of construction, and the progress on establishing regulations to govern the programme.
In response, PS Hinga explained that the proceeds from Park Road were transferred to the National Housing Corporation (NHC) to build affordable houses in Homa Bay. He noted that the funds will be recovered from the sale of those new houses.
Highlighting the programme’s achievements, Hinga said over 1 million jobs have been created since September 2022. He added that 3,172 affordable housing units have been completed, 4,888 units have been advertised for sale, 148,465 are under construction, 188,413 units are in the planning stage, and 177,686 student housing beds have been advertised to help resolve the student housing shortage.
On policy and regulation, PS Hinga told MPs that a draft of the Affordable Housing Regulations will be presented to the Cabinet for approval.
MPs also proposed the creation of a dedicated TV programme to educate Kenyans on how to benefit from the Affordable Housing Programme and access homes under the government initiative.
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