For the last few years, the government of Kenya has made it a priority to provide over 500,000 affordable houses. This initiative comes at such a time when the house and land pricing has been on the rise making it impossible for the average Kenyan to afford to house.
The amount of housing supply has also been less than demand in the recent past. Most investors have been targeting the high-end area making it harder for lower-end Kenyans to afford a house. A factor that has resulted in a housing crisis currently in the country.
To solve this challenge, the government has partnered with both the public and private sectors to build affordable houses across the country. Mostly, the government provides land while the private sector does the construction, and financial institutions offer the financing.
Who is eligible for affordable housing?
Every Kenyan is eligible to benefit from the affordable housing program as long you meet the set criteria. This includes;
- Be at least 18 years of age
- Have a valid National Identity Card
There are various types of housing under this program. The type depends on your income level. These types include;
- Social houses
- Low-cost houses
- Mortgage houses
Social houses target those earning less than 20K per month. They cost between 500K for a studio to 1.5 million for a 3-bedroom house. Low-cost houses target those earning up to 50K. These houses cost an average of 1 million for a 1-bedroom to 4 million shillings for a 3-bedroom house.
The mortgage houses target those earning more than 50,000 shillings and can qualify for a mortgage from the available financial institutions.
How to Apply for Government Affordable Housing in Kenya
The process of applying for affordable housing includes;
- Registering with the Boma Yangu platform
This is the platform that manages all affairs on affordable housing. To register, you are required to provide your key details such as;
- Phone number
- 2. Start Making Contributions
To qualify for affordable housing, you need to have contributed at least 12.5% of the house value. As an example, if the house costs 1 million shillings, you need to have at least 125,000 shillings.
There is no limit to how much you should contribute per month as long as you meet the required limits.
3. Chose your preferred house
Upon satisfying the requirements, you are now ready to apply for a house of your choice. You should note that getting a house is based on availability and demand.
House allocation happens through an auction on a first come first get basis. The number of houses available is listed on the government Boma Yangu portal where you can track construction progress.
What happens if you don’t get a house?
In case you miss a house, you will be scheduled for the next project. However, your funds are entitled to earn a yearly interest.
You can also claim a refund of your contributions after 15 years or at retirement age whichever comes first.
Ongoing affordable housing projects
There are various ongoing and completed affordable housing projects across the country. Some of these include;
- Pangani estate affordable houses
- Parkroad affordable houses