A growing number of Kenyans who signed up to buy government affordable houses are pulling out of the programme, withdrawing money from the Boma Yangu platform created to mobilise savings for home ownership.
Refunds to contributors hit Sh2.56 billion by the end of June, nearly half of the Sh5.47 billion mobilised through the platform, according to new data from the State Department for Housing.
By May last year, refunds stood at Sh788 million, but have since more than tripled. During the same period, net savings rose almost proportionately from Sh926.4 million to Sh3 billion, although refunds have grown slightly faster than fresh contributions.
A special audit of the Boma Yangu portal, covering July 2020 to May 2025, showed refunds to prospective Affordable Housing Programme (AHP) buyers had risen three-and-a-half times since President William Ruto took office.
The audit found voluntary contributions during the final two years of former President Uhuru Kenyatta’s administration totalled Sh1.33 billion, compared with Sh1.14 billion between July 2022 and May 2025.
Refunds, however, increased from Sh177.5 million in the 2020/21 and 2021/22 financial years to Sh610.7 million over the period from July 2022 to May 2025.
“Between the 2020/21 and 2024/25 financial years, a total of Sh2,467,694,080 was received as voluntary contributions under the Boma Yangu Scheme. Out of this amount, Sh788,195,690 was refunded to prospective homeowners,” Auditor-General Nancy Gathungu says in the report.
Since the audit was completed, refunds have climbed from Sh788 million to Sh2.56 billion, while net savings have grown to Sh3 billion.
The balance represents contributors’ savings plus investment income, less refunds paid to those who opt out.
The audit showed 2024/25 recorded the highest annual refunds at Sh285.6 million, while 2020/21 registered the highest annual contributions at Sh741 million.
Fresh data from the State Department indicates 2025/26 recorded the sharpest growth, with refunds increasing by Sh1.77 billion and net savings by Sh2.08 billion since May last year.
By December 13, 2025, Boma Yangu had mobilised Sh3.84 billion in voluntary savings, of which Sh2.24 billion had been withdrawn. Registered users have since risen from 1.02 million to 1.26 million.
“Refunds are not a defect of the scheme; they are the scheme working as designed. The law gives every voluntary saver who has not been allocated a unit the statutory right to withdraw their savings, with accrued interest, on 90 days’ written notice,” it said.
The department said the refunds include both members who withdrew their savings and those whose deposits were applied towards the purchase of affordable housing units.
It did not, however, provide a breakdown of the two categories. A source involved in the transition of the platform from the National Housing Corporation (NHC) to the Affordable Housing Board (AHB) disputed the claim that refunds also include deposits used to purchase houses.
“When we were handing over from NHC to the Affordable Housing Board, we had to account for all monies received. That is what accounts for the refunds because we refunded them and they never got houses, so they wanted their money back. We gave them back their money and that could not be available to the Affordable Housing Board when we were handing over,” the source said.
The source added that refund requests continued during the transfer of the Boma Yangu platform from NHC to the AHB.
Beneficiaries of the New Mukuru Estate Affordable houses during a thanksgiving mass in South B in Nairobi for the 348 beneficiaries on June 2, 2025.
Photo credit: Evans Habil | Nation Media Group
The Affordable Housing Regulations, 2025, allow voluntary savers who have not been allocated a unit to withdraw their savings together with accrued interest or profit, less applicable administrative costs.
The rising withdrawals raise fresh questions about uptake of a programme President Ruto has made a flagship project, with more than 270,000 housing units currently under construction.
The concern comes as the Auditor-General warns that the programme faces “affordability and public perception risks affecting uptake of housing units.”
“The ability of contributors to access their savings, where they choose not to proceed with a purchase, demonstrates that the voluntary savings scheme operates as intended and provides contributors with confidence that their funds remain secure and accessible.”
Boma Yangu is a digital platform through which prospective buyers register and save at least five per cent of a home’s value before they can be allocated a unit.
The platform was introduced after courts blocked the government’s attempt to introduce mandatory housing deductions in 2018. The current administration later introduced the Housing Levy, under which workers contribute 1.5 per cent of their salaries.
The Kenya Revenue Authority collected Sh114.5 billion in housing levy deductions between June 2023 and April 2025, remitting Sh111.3 billion to the government.
Besides levy collections, the programme also relies on proceeds from house sales and voluntary savings through Boma Yangu.
The Auditor-General says contributors’ funds were invested in Treasury bills, generating Sh345.7 million in investment income by May 2025, with 79 per cent earned during the three years to May 2025.
Affordable Houses in Bahati, Nakuru County on May 12, 2026. Construction of the second phase is ongoing after the first one was completed early this year.
Photo credit: Boniface Mwangi | Nation Media Group
The State Department said contributors who withdraw receive both their savings and accrued investment income. It added that rising contributions indicate sustained public confidence, while withdrawals demonstrate that the right to exit the scheme is genuine. About 30 per cent of the 1.26 million registered users are actively saving towards home ownership.
By May last year, the platform held Sh926.4 million, comprising Sh270.8 million in bank deposits and Sh652.5 million invested in Treasury bills.
At the time, 148,465 affordable housing units were under construction across 43 counties, while Treasury records showed 2,379 units had been completed since September 2022.
“The audit confirmed that the identified net assets, comprising bank balances, Treasury Bills, accrued investment income and related liabilities, were reconciled and transferred from the National Housing Corporation to the Affordable Housing Board in June and July 2025,” the Auditor-General said.
Over the last two financial years, the government allocated more than Sh200 billion to the State Department for Housing, mainly to implement the Affordable Housing Programme. About 2,185 affordable housing units were completed between July 2022 and June 2025.
