Affordable housing reduced house cost in Nairobi - Boma Yangu

Boma Yangu, a solution portal supporting the Affordable Housing programme now says that the cost of a house in Nairobi has reduced since the implementation of the programme. 

Boma Yangu said that before the Affordable Housing Programme was first implemented by former President Uhuru Kenyatta, the average cost of a house in Nairobi was Sh11 million and there was almost no supply. 

The portal supports the programme targeting the delivery of decent and affordable houses to low and middle-income households.

Currently, through the Affordable Housing Programme, Kenyans have access to homes costing Sh3 million and below which is a big reduction from Sh11 million. 

But Kenyans will only get Affordable Housing units by signing up for mortgages by logging into the Boma Yangu portal. 

One can pay a mortgage at 15 percent interest rate for a period of 10 years to acquire a housing unit.   

For low-cost houses, one can pay a fixed interest rate of 5 per cent for 30 years to get a unit. 

For social housing, the interest rates stand at 3 per cent and a tenure of 25 years. 

Currently, the housing demand in the country stands at 250,000 units annually, yet the supply is estimated to be at 50,000 units ( 80 percent deficit)  targeting the high-end market.  

The 250,000 units demand is for new housing only and fails to speak to the high qualitative housing deficit in Kenya which is estimated to be 1.8 million. 

Additionally, only 2 per cent of formally constructed houses are targeted for the lower-income segments of the market, despite the segment accounting for the largest share that demands the houses. 

President William Ruto, through the proposed Finance Bill 2023, now wants every employed Kenyan to pay 3 per cent of their monthly income to the Housing Fund.

Ruto said the housing levy will create a pool of funds that will be used to build more houses under the Affordable Housing Programme.  An idea that has sparked public debate with many opposing it. 

Ruto intends to build 250,000 houses per year across the country.