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The property market has suffered in the country due to the economic meltdown occasioned by the COVID-19 pandemic.


Here’s How you can Own A Home By Contributing Sh200 Per Month

NAIROBI, Kenya May 21 – Kenyans can voluntarily contribute Sh200 per month to own a home, the State Department for Housing and Urban Development has said.

According to the department, Kenyans of all walks of life are eligible, provided they register for the scheme and contribute either in lump sum or the prescribed minimum of Sh200 per month.

This was revealed when the Department was reacting to media reports that the Sh200 contribution is mandatory to all Kenyans.

“Only members registered with the Housing Fund are required to make voluntary contributions,” read part of the statement.

According to the programme dubbed Boma Yangu, a total of 296, 026 Kenyans have so far registered for the platform that allows them to start their journey towards owning a home.

“Notwithstanding the contributions, in order to qualify for a house, a member shall need to have contributed ten percent of the price of the house they wish to buy,” the statement added.

Those willing to be registered for the programme according to the government should be citizens of Kenya, be above the age of 18 and must have a valid national identity card.

Upon completion of registration, a member is allocated a unique identification number which they will use to make their monthly contribution to the Housing Fund.

The contribution schemes are categorized into three namely: statutory contributor which provides that mandatory contributions are capped at Sh2, 500 per month per employee-employer. Voluntary contributor whose contributions are not taxed and finally the joint contributor which entails an arrangement made by spouses.

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According to the regulations guided by the fund, contributions can be accessed on the sooner of 15 years after a member’s first contribution or the attainment of retirement age. Allocation of the houses to qualified applicants commences immediately once the construction of the affordable houses begins.

The initial eligibility for allocation will depend on several factors such as when you registered, family status as well as demand across the housing categories.

Those who do not get an allocation in the initial allocation are then put on a waiting list to ensure that they get priority in subsequent allocations.

Affordable Housing is one of President Uhuru Kenyatta’s big four agenda which he envisioned his administration will construct close to 500, 000 homes by the end of 2022.

Treasury Cabinet Secretary Ukur Yattani earlier this year told National Assembly members in the Transport Public Works and Housing Committee that their was no guarantee that adequate funds will be channeled to the Ministry of Transport to fund the ambitious project to construct afford houses.

CS Yattani revealed that already Sh5 billion had been aside to fund the project during this financial year.

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