Boma Yangu: Kenya clarifies when affordable housing buyers should start monthly payments
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Kenya's housing ministry says applicants holding offer letters do not need to start monthly payments until their units are allocated and occupied.
Kenya's State Department for Housing and Urban Development has clarified that applicants enrolled in the Affordable Housing Programme through Boma Yangu who have received offer letters do not need to begin monthly housing payments immediately, provided they are still awaiting allocation and occupation of their units.
The clarification followed mounting questions from applicants over whether they should continue saving after receiving an offer letter or start paying monthly rent while waiting to occupy their homes. "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.
According to Boma Yangu, applicants can await allocation and occupation of their units, after which they begin making the monthly payments outlined in their offer letter. Allocation requires an initial deposit: 5 per cent for a social housing unit and 10 per cent for an affordable unit, while deposits for market-rate units are set by the private developer's terms.
Once a house is allocated, the applicant receives a letter of offer and chooses how to settle the outstanding balance. Those qualifying for the Tenant Purchase Scheme (TPS) sign a TPS agreement, making monthly installments linked to the financing agreement rather than triggered by receipt of the offer letter. The programme places no cap on voluntary savings.
The State Department did not clarify how pre-allocation savings are treated, whether they reduce the outstanding balance, lower future monthly installments, shorten the repayment period, or accumulate toward the purchase.