Affordable housing in Kenya is one of President William Ruto’s Big 4 Agenda legacy projects, now accelerated under the Bottom-Up Economic Transformation Agenda (BETA). The initiative aims to provide low and middle-income earners with access to dignified, affordable homes, while also stimulating job creation and urban renewal.
What Is Affordable Housing in Kenya?
The Kenyan government defines affordable housing as quality housing with a monthly rent or purchase price that does not exceed 30% of a household’s gross income. Under this program, houses are being constructed across the country, including studio apartments, one, two, and three-bedroom units.
Key Features:
- Prices start from KSh 600k for studio units
- Mortgage financing as low as KSh 4,000 per month
- Construction led by the State Department for Housing and Urban Development
Who Qualifies for Affordable Housing?
To qualify for the affordable housing scheme, applicants must:
- Be a Kenyan citizen
- Be over 18 years old
- Have a valid national ID
- Register on the Boma Yangu Portal
- Contribute monthly through the Housing Levy
The program targets both salaried and informal sector workers. Priority is often given to first-time home buyers.
How to Apply for Affordable Housing in Kenya
- Register on the Boma Yangu platform
- Submit documents including ID, KRA PIN, and proof of income
- Contribute monthly to the Housing Fund through your employer or M-Pesa
- Track your status via the portal
- Wait for allocation based on your income bracket and housing availability
Understanding the Housing Levy
The Housing Levy is a mandatory deduction introduced under the Finance Act 2023:
- Employers and employees each contribute 1.5% of the gross monthly salary
- Informal workers can contribute voluntarily
- Funds are used to finance housing development and maintenance
This has sparked national debate due to its impact on take-home pay and employment costs. However, the government defends it as essential to bridge the housing deficit.
Benefits of the Affordable Housing Program
- Home Ownership: Enables low-income Kenyans to buy or rent quality homes
- Job Creation: Over 250,000 jobs created in construction and related industries
- Urban Renewal: Replaces slums with planned housing communities
- Financial Inclusion: Encourages saving and access to credit
Challenges Facing the Program
Despite its promise, the program faces challenges:
- Limited transparency in the allocation process
- Slow construction pace vs. housing demand
- Public backlash over the Housing Levy and forced contributions
Many Kenyans question whether the homes are truly affordable or accessible.
Affordable housing in Kenya is both an opportunity and a work in progress. It’s transforming urban landscapes and offering new paths to homeownership. Still, the government must improve transparency, speed up delivery, and ensure fairness in allocations.
External Resources:
Are you ready to own a home or learn more about the housing levy? Visit Boma Yangu to register or subscribe to Luvisia Digital for updates on housing programs in Kenya.
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