Kenyans registered under the Affordable Housing Programme through Boma Yangu have been given guidance on when they should start making monthly payments after receiving an offer letter for a housing unit.
The State Department for Housing and Urban Development clarified that applicants who have received offer letters but are yet to be allocated and occupy their houses are not required to begin making monthly housing payments immediately.
However, applicants who have the financial capacity to continue contributing towards their homes while waiting for allocation are free to do so.
“Kindly note that you may continue saving towards your home if you are financially able to do so. However, there is no need to worry if you choose to wait,” the State Department said.
The clarification came after applicants raised questions over whether receiving an offer letter meant they were required to continue saving or begin making monthly payments before taking possession of their units.
Boma Yangu explained that successful applicants can wait for the allocation and occupation of their homes before commencing the monthly payments specified in their respective offer letters.
Applicants seeking allocation under the programme are required to make an initial deposit based on the category of housing unit they intend to purchase, with options including social, affordable and market-rate housing.
Those seeking social housing units are required to pay a five per cent deposit before receiving an offer letter, while applicants for affordable housing units must make a 10 per cent deposit. For market-rate units, the required deposit is determined by the terms set by the respective private developer.
After a unit is allocated, the applicant receives an offer letter detailing how the remaining balance can be settled. Beneficiaries who qualify for the Tenant Purchase Scheme (TPS) are required to enter into a TPS agreement.
For TPS beneficiaries, the monthly instalments are determined by the terms of the financing agreement and do not automatically begin simply because an applicant has received an offer letter.
The programme further allows applicants to make voluntary savings without a specified upper limit. This means those who can afford to contribute more while waiting for allocation can continue saving towards their homes.
However, the State Department did not provide details on how savings made before allocation would be treated once a house is assigned.
It remains unclear whether such additional contributions would be used to reduce the outstanding balance, lower future monthly instalments, shorten the repayment period, or simply accumulate towards the eventual purchase of the house.
