Government removes deposit for Kenyans earning Sh20,000 in new affordable housing relief

President William Ruto when he officially launched Mukuru Housing Estate Phase II, featuring 4,536 modern studio apartments, and handed over keys to proud new homeowners on December 18, 2025./PCS

The government has announced a new plan to exclude Kenyans earning less than Sh20,000 from the mandatory five per cent affordable housing deposit.

 The move is meant to make affordable houses accessible to low-income earners by easing the burden of upfront payments through deposit assistance, targeting Kenyans earning Sh20,000 and below per month.

 The new measure that comes as a major relief to many Kenyans unable to raise the deposit, was communicated by Housing PS Charles Hinga.

 Hinga spoke during a show on Citizen TV.

 The PS explained the move is designed to address one of the biggest barriers to home ownership for low-income households, many of whom struggle to raise lump-sum deposits despite having the ability to make regular monthly payments.

 “Remember there is five per cent deposit for everybody else, to make housing affordable because what is affordable is based on the size of your pocket. We have determined that the deposit is a big barrier especially for the people in the lower echelons and lower income so therefore if you earn Sh20,000 and below, whether it is formal or informal income, there will be no deposit,” Hinga said.

 Under the new framework, individuals within this income bracket, whether in formal employment or the informal sector, will not be required to pay an upfront deposit when applying for houses under the Affordable Housing Programme.

 Instead, the state will step in to cover the deposit through a structured assistance mechanism managed by the Affordable Housing Board.

 Beneficiaries will repay the assisted amount gradually under flexible terms, easing pressure on already stretched household finances.

 The policy is expected to particularly benefit workers in the informal sector — including casual labourers, traders and artisans — who often lack access to conventional mortgage financing despite steady incomes.

 The moves comes after a similar one in July where the government launched a Deposit Assistance initiative slashing the initial deposit from 10 per cent to just five per cent.

 Speaking during a public engagement in South B, Nairobi, on July 2, the acting CEO of the Affordable Housing Board Sheila Waweru, urged Kenyans to take full advantage of the initiative, which is designed to remove financial barriers and encourage more citizens to own decent homes.

 "The Affordable Housing Programme continues to explore ways to increase access and affordability," Waweru said.

 "Reducing the deposit requirement allows more people, especially those at the bottom of the economic pyramid, to qualify for a home."

 Housing stakeholders welcomed the move, saying deposit assistance could unlock home ownership for millions of Kenyans previously excluded from the market due to stringent entry requirements.

 The government has urged eligible citizens to register and update their details on the housing platform as demand the units continues to rise.

 The Affordable Housing Programme is a government initiative aimed at providing decent and affordable housing to low- and middle-income households.

 It seeks to address the housing deficit by facilitating the construction of new units and making them accessible through various financing options.

 The programme also aims to stimulate economic growth by creating jobs and driving wealth creation.

 Financing options include mortgages and rent-to-own schemes.

 Units are categorised as social housing (for those earning below Sh20,000), affordable housing (for those earning between Sh20,000 and Sh149,000) and affordable middle-class housing (for those earning above Sh149,000).

 To book a unit, one must register on the official Boma Yangu platform via an eCitizen account.

 Available units range from studio apartments to one, two and three-bedroom houses, priced between Sh640,000 and Sh2.9 million.

INSTANT ANALYSIS

 The initiative forms part of the government’s broader Affordable Housing Programme, a key pillar of its development agenda, which seeks to deliver decent and dignified housing while creating jobs and stimulating local economies. Thousands of housing units are currently under construction across the country, with allocations being processed through the Boma Yangu digital platform.