Nearly 80 percent of Kenyans registered for affordable housing units have never made any contributions towards hitting the required deposit of five percent of the value of the targeted houses to qualify for allocation.
Latest disclosures show 79.97 percent of the 816,780 Kenyans, or 653,182 that have registered in the Boma Yangu portal—the platform through which Kenyans are allowed to save, select, and book affordable units—have never made any contribution.
The figures relate to the status as of the end of May 2025, with National Housing Corporation (NHC) saying just 163,598 people or 20.03 percent of all Kenyans registered in the portal had made any contributions towards triggering an allocation for a house.
Information available on Boma Yangu portal states that Kenyans eying the affordable houses are supposed to register in the portal, then start saving towards their dream house. The savers are allocated a house once they hit deposits that are equivalent of at least five percent of the value of the targeted house.
NHC says the majority (160,534) of the savers in the portal had accumulated savings below Sh100, 000, representing 98.13 percent of the total savers. Just 46 members had contributed above Sh1 million as at end of June 2025.
Construction of affordable housing units is funded through a 1.5 percent levy on individuals’ gross earnings, but applicants must still raise a five percent deposit of the value of the houses before they are allocated a unit.
The contributors are then required to continue making payments until the full value is settled for ownership to be transferred to their name.
The Affordable Housing Board said in separate disclosures that Sh125 billion has been collected by the Kenya Revenue Authority (KRA) since the inception of the levy, with Sh73.1 billion coming in the year ended June 2025.
Housing levy deductions, aimed at expanding access to low-cost housing, were introduced in March 2024, drawing mixed reactions from workers and employers. Employees match workers’ contributions every month.
President William Ruto (centre), Lands CS Alice Wahome (right), Nakuru Governor Susan Kihika (third left) and Housing PS Charles Hinga (second left) listen to Housing Department Senior Superintending Architect Dan Kasimbili (far left) as he takes them through the architectural design of Eldoret Pioneer Affordable Housing project in Naivasha.
Photo credit: PCS
One's income band determines the kind of houses they are allocated. People earning up to Sh19,999 a month qualify for units categorised under social housing while those with monthly income of between Sh20,000 and Sh149,999 qualify for those under affordable housing plan. Those earning over Sh150,000 a month qualify for allocations under affordable middle-class houses.
The value of the fund stood at Sh1.08 billion as at end of May 2025, with NHC indicating that there was a 41 percent rise in the number of registered members and a 93 percent rise in the number of those contributing.
Out of the Sh1.08 billion, Sh764.2 million relates to the savings made by people who are yet to be allocated a house while Sh320.7 million relates to net investment income earned.
NHC said Sh881.49 million of the funds were held in Treasury Bills while Sh205.12 million was held in cash collection account.
In 2024, the State created the Affordable Housing Board under the Affordable Housing Act 2024 to start managing the affordable housing fund. The changes saw the management of the voluntary contribution fund transferred from NHC to the Affordable Housing Board at the end of May, 2025.
Since inception of the fund, NHC had received Sh3.4 billion and paid out Sh2.6 billion for the projects. The contributions earned cumulative investment income of Sh320 million.
NHC said 597 Boma Yangu members became homeowners at the Park road Affordable Housing project, which was the first flagship project under the programme.
The affordable housing project, completed in December 2020, comprises 1,370 residential units of one to three bedrooms. The units were sold for Sh1.5 million for one bedroom, Sh2-3 million for two bedroomed houses and between Sh3.55 million and Sh4 million for three-bedroomed ones.
Some 548 units were taken up by the civil servants housing scheme, leaving 225 for public agencies and 597 for Boma Yangu members.
NHC says all the beneficiaries of the ParkRoad project under the Boma Yangu initiative paid the initial deposit to the fund before getting the houses. This means they had accumulated deposits of between Sh75,000 and Sh200,000, going by the quoted selling prices.
President William Ruto, during the laying of a foundation stone for the construction of the Chesumei Affordable Housing Project in Kapsabet, Nandi County, on March 12, 2026.
Photo credit: Jared Nyataya | Nation
“The purchasers were given the option to purchase a housing unit through the tenant purchase scheme, cash or mortgage. All offers to public agencies were on cash and mortgage,” said NHC.
“Those who received offers to pay within 90 days (cash/mortgage terms) also paid the balances to the Fund. However, those who received offers on tenant purchase continue to pay the monthly instalments directly to the Corporation.”
The Affordable Housing Board handed houses to homeowners of Boma Yangu New Mukuru Estate and Boma Yangu Homa Bay Estate during the financial year ended June 2025.
The board says a total of 210,446 affordable housing units are ongoing and will be completed by the end of June 2026.
Despite the robust inflows into the affordable housing fund, absorption of the cash has lagged due to the phased nature of construction projects, which take time to plan and implement.
As a result, nearly half of the proceeds have been temporarily invested in short-term government securities that mature in between three and 12 months.
The Affordable Housing Board, which is the State agency that oversees development of houses and their off-take, has previously defended the move, saying it ensures the funds are safeguarded and productive while awaiting deployment.
