Most of the Sh2.56 billion recorded as refunds under the Boma Yangu platform did not leave the Affordable Housing Programme and was instead used as deposits for home buyers, a breakdown by Housing PS Charles Hinga has indicated.
Mr Hinga, in a statement released on Wednesday, July 23, said that the Sh2.56 billion figure included both actual cash refunds and money used to pay deposits for customers who were allocated houses.
Boma Yangu was formed during President Uhuru Kenyatta’s era, as a platform for Kenyans to voluntarily mobilise savings towards ownership of affordable houses.
Mr Hinga said that cash actually refunded to Kenyans who opted out of the Boma Yangu savings kitty was Sh803.3 million by the end of June, while Sh1.76 billion referred to cash that was moved from Boma Yangu to pay deposits for customers who were allocated houses.
PS Hinga said both cash moved from the savings wallet of a prospective homebuyer under the affordable housing programme (AHP) and cash refunded to prospective customers who decide to take back their money are treated as “refunds” in the state department’s accounting.
An affordable housing project.
Photo credit: File | Nation Media Group
“The platform operates on a two-wallet structure. A saver first accumulates funds in their savings wallet. To be considered for allocation of a unit, the saver sweeps their savings into their deposit wallet for the specific scheme they wish to buy into. If the saver is allocated a unit, the deposit is remitted to their financier as part of the home purchase transaction,” PS Hinga said.
“If the saver is not allocated…the money is returned to the saver's wallet so that they can select another scheme and enter allocation again. At all times, the saver may take their money out quickly, either as cash for their own use or as a deposit where they need it,” he added.
The PS noted that while cash removed from a prospective customer’s Boma Yangu wallet towards deposit for home purchase does not constitute actual withdrawals, it is recorded as “refunds” in the transaction books.
The clarification was in response to an article the Nation published on Sunday, which was based on data from the state department and a special audit by the Office of the Auditor-General.
The special audit, which captured the status by the end of May last year, indicated that Boma Yangu had mobilised Sh2.47 billion in savings but Sh788 million was recorded as “refunds to contributors.”
“The article correctly noted that a breakdown of refunds between the two categories was not provided at the time. The State Department now provides it,” the PS said.
The State Department said the idea behind savings in the Boma Yangu platform was born out of realization that many Kenyans would need to save progressively to raise a 5 per cent deposit required to apply for allocation of a house under the AHP
PS Hinga noted that sometimes, prospective customers are forced to withdraw the savings to meet day-to-day needs.
“Affordable housing units take time to build, and the scheme was designed so that, rather than being overwhelmed by the full deposit at the point of completion, an ordinary Kenyan can put money away steadily over the construction period.
“Saving toward a home deposit is done over time, out of ordinary household income, by ordinary Kenyans. Life does not pause while a family saves: school fees fall due, medical needs arise, businesses need working capital,” the PS said.
At least 1.26 million Kenyans had registered on the Boma Yangu platform by the end of June, a growth from 1.02 million by December last year. The state department says about 30 per cent of the registered Kenyans save actively at any given time.
Net savings on the platform grew from Sh926.4 million by the end of May 2025 to Sh3 billion by the end of June, 2026.
