Lands and Housing Cabinet Secretary Alice Wahome has explained that Kenyans are still required to pay for residences under the government’s affordable housing initiative, even though they contribute to the housing levy.
The program, launched by President William Ruto, seeks to tackle the housing shortage for low-income Kenyans and create employment prospects for young people.
Starting in 2023, employed Kenyans have been paying 1.5% of their monthly wages, while employers are contributing the same amount.
On Wednesday, Wahome clarified that these contributions are meant for building the homes, not as initial payments for ownership.
She highlighted that Kenyans looking for the homes must still sign a rent-to-own contract, which can last as long as 30 years.
“This funding is intended for constructing the houses, not for providing you with a house.”
“Following that, the house payment will be your responsibility,” she stated during a simulcast on Nation FM/NTV.
She referred to the initiative as a “tenant purchase program” instead of a sale.
When asked why the government is unable to provide this as a social protection program for low-income Kenyans unable to afford rent-to-own, Wahome replied, “We need to be realistic and compassionate.”
She mentioned that allowing everyone into the scheme would complicate the process of selecting qualified participants for affordable housing.
