Kenyans have expressed displeasure after Lands Cabinet Secretary Alice Wahome clarified that paying the housing levy under the affordable housing programme does not guarantee one a house.
Speaking on Wednesday morning on NTV's Fixing the Nation programme, CS Wahome insisted that the contributions should not be confused with savings but should be seen as a form of taxation.
“The money you are contributing is not supposed to give you a house, it is helping us build the house. After that it is you who pays for that house,” Ms Wahome said.
“Contributing to the housing levy does not guarantee owning a house under Boma Yangu. What you’re contributing is not your savings; you’re contributing a tax,” said CS Wahome.
“What you are contributing is a tax, not your savings. It is similar to other levies such as the road levy. You contribute to a pool that enables another Kenyan to own a house. The platform is public and transparent, ensuring that anyone can access the opportunity to own a home.”
The affordable housing programme, which requires employees to contribute 1.5 per cent of their salary with a matching contribution from the employer, aims to complete one million houses by 2027.
But Kenyans on X (formerly Twitter) faulted the financing model, terming it a loophole for corruption.
“Introducing an extra tax to build houses for sale to the same taxpayers was a horrible idea and no wonder the affordable housing project dropped from 200,000 houses per year to less than 1,000. Not even the people behind the project can clearly articulate the programme’s benefits,” said Antony Alexanderia Irungu.
Lands, Public Works, Housing and Urban Development Cabinet Secretary Alice Wahome speaks to the media during a site visit to Mukuru Affordable Housing Project in Nairobi on December 14, 2024.
Photo credit: Evans Habil | Nation Media Group
“In due time Kenyans will understand the real beneficiaries and occupants of the housing scheme. This will not be Kenyans,” added Sam Njuguna.
Uncommonson said: “The government initially framed the housing levy as a means to provide affordable housing, implying that contributors would benefit directly.”
“What a bogus explanation! Use my money to build a house that is not going to be mine unless I buy the house. I think that is the proper definition of a Ponzi scheme,” said Linda Oriedo.
At the same time, CS Wahome explained that the Affordable Housing Board is responsible for managing the funds, receiving applications, assessing eligibility and allocating houses accordingly.
CS Wahome said the government is committed to accountability in the programme to ensure that as many Kenyans as possible, especially those in the targeted low-income bracket, have access to decent housing.
The Housing Levy on Affordable Housing Model and Payment Plan aims to facilitate home ownership through a rent-to-own model where beneficiaries make monthly payments over a 30-year period.
“With as little as Sh3,900 per month, one can own a studio apartment. No one is required to pay Sh640,000 upfront. The amount is spread over 30 years, making homeownership more accessible,” she explained.
The minister said the programme was aimed at helping those currently living in informal settlements and low-income areas.
The money raised from the levy will help the government build houses, which will then be made available to Kenyans through a rent-to-own scheme.
“We are not building houses to give away for free. We are constructing homes that Kenyans will acquire through affordable rent-to-own terms. If you want a two-bedroom home, you can apply, and your allocation will depend on your income level,” she stated.
The CS clarified that while many Kenyans want three-bedroom houses, the programme's primary focus is on affordable housing for a larger population.
“Providing three-bedroom houses for all is not practical given the high demand. We need to allocate available units equitably,” she noted.
“I would be happier to receive greater support and appreciation for this program. However, my duty is to drive its success and ensure that as many Kenyans as possible benefit from it,” she stated.
She announced that the government would release 4,888 housing units by the end of March 2025, admitting that the government was two months behind schedule.
“Every quarter between 4,000 and 5,000 units will be made available. The delayed allocation, initially scheduled for December 2024, is now expected to be completed by March,” she said.
In Mukuru, 1,080 units will be part of the initial allocation, with a total of 13,200 units planned for the area.
Under the Boma Yangu programme, homeowners will be given a 99-year lease title, which can be renewed by the government. Ms Wahome said the titles function like any other property title, allowing owners to sell or transfer their homes.
“Once you complete your payments, the house becomes yours. The title is transferable, meaning you can sell or pass it on to your family,” Ms Wahome explained.
In addition, she said, each applicant will only be eligible for one house to avoid unfair allocations and ensure that the initiative benefits as many Kenyans as possible.
