No More Deposit- Govt's New Method In Issuing Ruto's Affordable Houses

Housing Principal Secretary (PS) Charles Hinga on Tuesday, March 19 announced that the government would attend to Kenyans applying for and selecting houses under the Affordable Housing Program on a case-by-case basis.

Speaking during a forum at State House shortly after President William Ruto signed the Affordable Housing bill into law, the PS indicated that this would help navigate the deposit problem that Kenyans had raised during the public participation stage.

Initially, Kenyans were required to pay a 10 per cent deposit to secure a house, but the feedback collected during the public participation process saw this amended by both Houses of Parliament.

President William Ruto signing the Affordable Housing Bill into law at State House in Nairobi on March 19, 2024. /PCS

The case-by-case basis in the new situation will be to assess the amount Kenyans can pay to secure the houses in the program.

Furthermore, Hinga elaborated that the government would now provide the houses on a 'first come first serve' basis whereby those who applied through the Boma Yangu portal and selected the houses they preferred would be prioritised.

The interested applicants are, however, required to save Ksh200 through the account which will be activated once done.

"What I didn't update you on Mr President is that part of this lawmaking is public participation which is not an exercise of ticking the box. One of the things my committee went through was the issue of deposit. Many Kenyans stated that they liked the program but didn't prefer the deposit," Hinga stated.

"So both Houses agreed with them and there is no more deposit. Now, the government issues based on first come first serve, hence you are required to apply, spend Ksh200 and choose where you want to live. If you save every month, the amount required to pay will eventually be lowered."

The program will also give priority to youth, women and people with disabilities. Furthermore, PS Hinga recognised the importance of the program in terms of slum upgrades across the country.

"For instance, in Mukuru kwa Njenga, we want to construct 15,000 units on a 55-acre plot. We will move people systematically by relocating them to new houses and redeveloping the slums. This is how we will uplift the standards of such areas," Hinga noted.

To apply, Kenyans are directed to create an account through *832# USSD and pay Ksh200 through the account number BOMA, followed by their ID number. The payment will be made through Paybill 222222.

Ruto praised the new provisions under the new Affordable Housing Act which will however require Kenyans, both salaried and non-salaried, to contribute 1.5 per cent of their monthly pay to fund the ambitious project

According to the government, the deductions are set to resume immediately in a bid to hasten the construction of affordable houses.