The Affordable Housing Programme (AHP) is an initiative by government as one of the pillars under the ‘Big 4 Agenda’ which ensures that low and middle income households have access to decent and affordable housing units.
The Affordable Houses will be financed and built by private developers on both private and national and county government land.
Once the houses are built, the Housing Fund will purchase the units from the private developers and offer them to its members.
The Affordable Housing Programme is intended to address the housing needs of the following income brackets:
Given that these income groups form the bulk of the housing market, the AHP aims to provide them with accessible and standard living spaces that promote human dignity and goes a long way in establishing and promoting social equity and access to the urban cities.
The main role of the Government is primarily that of a facilitator that is one that aims to create an enabling environment for a private sector-led solution that will ensure that the ambitious and capital intensive programme becomes a reality. This will be done through several interventions such as:
The Housing Fund is a Fund established under the Housing Act with an aim of delivering affordable housing to Kenyans. The Fund will therefore play a critical role in overcoming the inefficiencies in the housing sector that have led to the housing deficit in the country. This will entail interventions addressing challenges faced from both the supply and demand side of the sector.
The Housing Fund will mobilize capital in order to achieve its objectives. It will be financed by statutory contributions from employees and employers to the Fund as provided for by the recent amendments to the Employment Act as well as voluntary contributions from potential homeowners. The statutory contributions to the Fund are estimated at KSh55 billion in the first year. In addition, the Housing Fund will also be funded by other sources of public and private financing; including grants from development partners and investments from equity investors.
Through these partnerships, the Fund will provide certainty of market to developers thus enabling them to deliver housing at the required scale. Affordability and access to competitive financing for home owners will be secured by the Fund by addressing tenure and interest rates through the National Tenant Purchase Scheme (NTPS). Owners will be able to make payments over a 25 year period with financing of between 3% - 7% thereby reducing expected monthly payments to manageable levels as well as a possibility for multi-generational mortgages
The Housing Fund as established by the Housing Act is under the control of the National Housing Corporation (NHC) and is thus fully anchored in law. It is institutionally embedded to ensure that we safeguard public funds and that the Fund is managed diligently and transparently. Section 7 of the Housing Acts spells out the administrative guidelines and governance structure that the NHC should adhere to so as ensure the Fund’s autonomy and protect it from manipulation and misappropriation.
In this regard, the NHC board is looking into options of competitively outsourcing, the Fund’s Administrator and Trustee to ensure that there is no concentration of risks. In the near future, the law will also be amended to ensure there’s enough diverse representation in the Board of Trustees
The AHP differs from other housing schemes in Kenya as it is the first comprehensive program in which the Government of Kenya seeks to use private sector funding to facilitate provision of homes to Kenyans in the lower and middle income brackets. It provides accessible and affordable financing options for potential homeowners using the National Tenant Purchase Scheme (NTPS) method where users will pay an affordable monthly payment.
Individuals interested in buying Affordable Houses under AHP will first have to register on the affordable housing portal, either online or on their mobile phones, begin making contributions to the Housing Fund and select their housing preference from the available or upcoming housing stock. Once registered and contributing to the Housing Fund, applicants who qualify will participate in a Regular and Transparent Allocation process for the available houses.
There is no fee for applying. It is absolutely free.
All applicants will need to be a citizen of Kenya with a valid national ID number.
No. Members who register on the affordable housing portal, begin making contributions and qualify for affordable housing, will be allocated a house as soon as developers begin constructing affordable houses.
The houses will be awarded through a fair and transparent system free of any human intervention and contact
No, the allocation system is not betting. It is a fair and transparent system that allocates houses to qualified applicants without any human intervention as indicated above. Members will be asked to indicate their preferred location (by county) of a house and will then be provided with information on the type of home they qualify for based on their income, required deposit payments and be provided with information on the projected monthly TPS payments.
Homes will be allocated through a randomised balloting-type allocation system – which means that potential owners will be selected from the waiting list of registered pre-qualified, eligible applicants. Allocation processing will be announced on the Housing Portal and through other communication outlets. Allocation will only be carried out for projects that are going live and will be done upon commencement of the construction.
The weighted pre-qualification criteria will include factors such as income, household status (priority to families), current assets owned, vulnerable groups, accumulated deposit, first come - first serve basis.
With regard to social housing, we will work with settlement executive committees which represent community interests and ensure that those living in the community are beneficiaries. This will entail registration, enumeration and verification of the community members
The system is designed to ensure every qualifying applicant is allocated a house. However, it is expected that there will initially be more demand for houses than supply of aordable houses. In the event that an applicant is not allocated a house in an initial allocation, their name will be put on a waiting list and the applicant will have a higher likelihood of allocation on subsequent developments.
Yes, the waiting list ensures that those who might have missed out on an initial allocation get priority.
The AHP homes will comprise of houses ranging from one-bedroom to three-bedroom units with varying sizes depending on the locations and the needs analysis. The unit typologies are as follows:
|One Bedroom||30 sqm||Kshs 1, 000, 000|
|Two Bedroom||40 sqm||Kshs 2, 000, 000|
|Three Bedroom||60 sqm||Kshs 3, 000, 000|
|One Room||Kshs 600, 000|
|Two Room||Kshs 1, 000, 000|
|Three Room||Kshs 1, 350, 000|
To enhance affordability, the program caps the maximum selling price of the housing units as indicated above.
Yes. The AHP is a nationwide program that also seeks to transform the lives of millions of Kenyans who live in the rural areas. The Government will continue to support homeowners to build houses that fit into the local environment and utilize locally available building materials. One of the major challenges of housing in rural areas is the quality of building materials. To address this, 92 Appropriate Building Technology (ABT) centres have been constructed across the country and we are looking to put up more in every constituency and eventually wards across the country. These will offer technical assistance and equipment to the members of the public to improve the quality of their houses. This initiative aims at addressing the housing needs of various communities in a cost effective and environmentally sustainable manner. We have also partnered with TVET colleges to train members of the public on how to use these technologies and also how they can modernize construction practices while preserving cultural values. We will also make available for hire Matofali machines which are used for the manufacture of stabilized soil blocks. The end result will be the creation of thousands of new jobs which will not only improve their quality of life but also reduce rural – urban migration. Rural housing funding will be available from NHC at competitive interest rates of 7% from the Housing Fund
Regular and timely updates on upcoming projects shall be given on the affordable housing portal and other platforms such as daily newspapers, radio and at your nearest, Huduma Center
The AHP anticipates that facilities management will be critical for ensuring that communities remain livable in the long term. Under the current delivery framework, homeowners will be required to pay an affordable service charge towards upkeep of common facilities. A portion of this service charge will go towards a sinking fund for major repairs within a housing complex.
Facilities management will be contracted to companies specializing in these services.
The AHP mainly targets Kenyans in the low and middle income brackets who have previously been excluded from owning decent homes due to the prohibitive costs and stringent financing requirements. Currently, the program seek to make affordable housing available for Kenyans with an income below KES 100,000 per month. However, although members who earn over Ksh 100,000 per month are not eligible for the affordable housing units, they nonetheless have access to other options such as through the Kenya Mortgage Refinance Company (KMRC). The (KMRC) will provide liquidity and longer-term financing to Kenyan banks and other institutions (SACCOs) with the aim of increasing the volume and tenor of residential mortgages as well as availability of fixed rate mortgages. This is expected to improve the affordability of mortgages, increase the number of qualifying borrowers, and result in the expansion of the primary mortgage market and home ownership in Kenya In addition, those earning above Ksh100,000 will also have an opportunity to access their savings after five years of saving which they can use for other housing related activities such as a down payment for a mortgage, mortgage repayment or for house improvements
Applicants will have to be at least 18 years of age.
Yes. There are opportunities for the civil servants to own homes under the AHP. For example, civil servants get first right to 30% of all units coming online while the police and the disciplined forces will get the first right to 20% of units. They are therefore encouraged to register in earnest and take advantage of their house allowances to get a better house;
Yes. Mandatory contributions are capped at KES 2,500 per month per employee and employer. However, voluntary contributions are not capped
Yes- spousal and joint contributions can be made towards the ownership of one house at a time although there is still an option to apply for a house individually. Joint contributions increase that couple’s chances to get their house within a shorter time
The savings will earn a return based on the overall return of the Housing Fund. Returns on member’s contributions will be announced by the board on an annual basis.
Yes. Members will be able to monitor their contributions via the affordable housing portal
Contributions to the Housing Fund can be accessed on the sooner of 15 years after a member’s first contribution or the attainment of retirement age.
No. All contributions to the Housing Fund will be subject to the same withdrawal rules.
The contribution made towards the Housing Fund would be adjusted proportionately to reflect the change in a member’s income
The amount payable for the house will depend on the type of house selected and allocated. The monthly payments will be determined after taking into account the amount of deposit paid and the desired payment period. The typical payment period will be at least 25 years
The payments shall be made monthly.
No. The payments will be fixed over the life of the financing.
How many houses can I buy? A member is only entitled to one house under the Affordable Housing Program.
Yes. The Housing Fund will provide long-term affordable financing to members that qualify and are allocated an affordable house under a long term Tenant Purchase Scheme.
Yes. However, the applicant will have to prove that they can make their regular monthly loan repayments.
The payment terms are designed to be affordable and flexible, geared towards helping you secure your home. However, every case will be looked at on a case by case basis.
Yes. A member cannot dispose of their house to the open market before 8 years have lapsed. However, before the 8 years are over, they have the option to sell it back to the Housing Fund and retain their equity build up
Information and guidance shall be provided through ocial communication channels on the State Department for Housing and Urban Development as well as on social media platforms and on the Affordable Housing website
Incomes will be accessed either individually or jointly depending on if the application is made individually or jointly. If an application is made jointly, the house title will be issued in the name of all the joint applicants.
Income includes any income sources whether regular or irregular.
In the event of death, the housing unit can be transferred to the registered next of kin
The AHP is intended to provide benefits beyond the delivery of affordable homes. The construction of the homes is expected to create direct and indirect employment opportunities for Kenyans. These will include opportunities for both skilled and unskilled labor approximated at 350,000 jobs over a four year period. We estimate that for every unit constructed, there are 3 – 5 new jobs created.
The AHP will create the much needed opportunity to formalize of the informal sector. Ring-fencing strategies will be implemented to ensure that the Jua Kali sector (local artisans and other professionals such as plumbers, electricians and AGPO) are able to make investments and supply inputs to the affordable housing program. This will include among other strategies standardization of inputs such as windows and doors. Light industries will also have the opportunity to provide construction materials such as cement
Other opportunities will be in facilities management aimed at ensuring that common property infrastructure and services are of a quality and functionality that is consistent with the level of physical, social, aesthetic and economic amenity provided by the property at the beginning of the development’s occupancy.
The size of the developments under the Affordable Housing Programme will be significant. It is therefore, anticipated that during the implementation of the program, there will be a rise in the consumption of the various building materials that are locally manufactured.
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