How to Apply for Affordable Housing in Kenya: A Complete Guide

The Kenyan government has pledged to provide more than 500,000 affordable houses for its citizens in recent years, given the steep rise in property prices. The drive towards affordable Housing has become more crucial than ever due to the imbalance between housing demand and supply. This article explores how to apply for affordable Housing in Kenya.

The Kenyan Affordable Housing Program

The Affordable Housing Program (AHP) is a government initiative targeting providing cost-effective homes to low and middle-income households. The government has engaged the private sector to construct these houses on public and private lands. It's a unique program, as it is the first in Kenya to leverage private funding to facilitate homeownership for Kenyans in lower income brackets.

The housing units under this program cater to different income brackets:

• Social Housing: for individuals earning up to Kshs 19, 999 monthly
• Low-Cost Housing: for those earning between Kshs 20, 000 - Kshs 49, 999 monthly
• Mortgage Gap Housing: for individuals earning Kshs 50, 000 - Kshs 149 999 Monthly

Government's Role in the Affordable Housing Program

The government's primary responsibility in the AHP is to create an environment conducive to a private sector-led solution to the housing crisis. This role includes:

• Provision of state-owned land for housing projects
• Ensuring infrastructure accessibility to project sites, such as roads, power, water, and sewerage
• Fast-tracking statutory approvals, such as title transfers and architectural drawings
• Offering tax incentives to registered persons and waiving stamp duty for first-time homeowners

Application Process for Affordable Housing

Applying for Affordable Housing in Kenya entails a few simple steps:

• Register on the Boma Yangu platform: This is the official portal for managing all affordable housing affairs. It's free to register, and you will need to provide essential details such as your national ID number.
• Contribute to the Housing Fund: Once registered, start contributing to the Housing Fund and select your housing preference from the available or upcoming housing stock.
• Participate in the Allocation Process: Qualified applicants will be part of a transparent allocation process for available houses.

Allocation of Homes

Allocation of homes under this program is done fairly and transparently, with houses assigned to qualified applicants without human intervention. The system considers income, household status, current assets owned, vulnerable groups, accumulated deposits, and a first-come-first-serve basis. Unallocated applicants are put on a waiting list for future developments.

Types of Houses under the Affordable Housing Program

The AHP offers houses ranging from one-bedroom to three-bedroom units, varying sizes depending on location and needs analysis. 

The unit prices and types are as follows:

• One Bedroom: 30 sqm at Kshs 1,000,000
• Two Bedroom: 40 sqm at Kshs 2,000,000
• Three Bedroom: 60 sqm at Kshs 3,000,000

Who is Eligible for Affordable Housing?

Every Kenyan is eligible to benefit from the AHP as long as they meet the set criteria. This includes being 18 and holding a valid National ID or passport. Furthermore, an applicant must contribute to the Housing Fund, which pools resources for developing affordable homes.

Documents Required for Affordable Housing Application

Applying for Affordable Housing requires certain documents that prove your eligibility. Here's a list of documents you need:

• National Identification Card or Passport: This is used to verify your identity.
• A payslip or Proof of Income determines your income bracket and how much you can afford.
• Proof of Contribution to the Housing Fund: This is required to ensure that you have contributed to the housing fund.

Finalizing Your Application

You can complete your application once you have gathered all the necessary documents. This step involves selecting your preferred housing type based on your income and personal preference. Remember, the government aims to make affordable housing accessible to as many Kenyans as possible, so choosing a home within your means is crucial.

You will receive an acknowledgment upon successful application, and your name will be on the waiting list. When your turn comes up, you'll be notified, and a house matching your preferences becomes available.

Financing Options for Affordable Housing

Recognizing that the affordability of these homes may still be a challenge for some Kenyans, the government and its partners provide various financing options to make owning a home a reality. Some of these financing options include:

• Housing Fund Contribution: This involves deducting 1.5% from your monthly income, which your employer matches. This fund serves as a savings scheme for owning a house.
• Mortgage Facilities: Various commercial banks offer affordable mortgage facilities for those intending to buy homes under the AHP. The Kenyan government has partnered with selected financial institutions to subsidize AHP beneficiaries' mortgages.
• Tenant Purchase Scheme: This scheme allows one to rent a house and use the rent paid in installments towards owning the home.

READ ALSO: Navigating Nairobi's Real Estate Market: Tips for Successful Investments

Conclusion

In conclusion, the Kenyan government's Affordable Housing Program is a practical step toward solving the housing problem in the country. Its robust structure, wide-ranging eligibility criteria, and flexible financing options provide a blueprint for all Kenyans wishing to own a home. By engaging the private sector and incentivizing contributions to the Housing Fund, the government has provided more affordable housing options for its citizens.

However, patience is needed as the demand is still high, and the supply is catching up. Therefore, while the application process might be straightforward, it may take time to secure a house. Despite this, the initiative offers hope for thousands of Kenyan families striving to realize the dream of home ownership.