The Government through the Ministry of Transport, Infrastructure, Housing, Urban Development and Public Works on Thursday, May 21, issued a clarification that all contributions to the National Housing Development Fund were voluntary.
In a letter by Transport CS James Macharia, the Ministry sought to set the record straight after following the publication of erroneous information in a section of the local media.
“As per the provisions of the National Housing Development Fund Regulations, 2020, currently undergoing the necessary public consultation processes, the minimum amount a member can contribute to the fund is Ksh 200.
“Due to the prevailing Covid-19 pandemic, public consultations on the regulations have been extended for a week to facilitate further engagements and receipt of public views. The public participation process will close on May 26, 2020,” the statement read in part.
The current regulations specify that a member shall contribute either in a lump sum or the prescribed minimum of Ksh200 to the Housing Fund, which shall be immediately credited to the member’s individual account.
“Notwithstanding the above contributions, in order to qualify for a house in the Boma Yangu Affordable Housing Programme, a member shall need to have contributed 10% of the price of the house they wish to buy with no time limit specified to attain the threshold,” the CS added.
The Ministry, through the State Department for Housing and Urban Development, further invited members of the public to take advantage of the extension to the Public Participation deadline so that their views can be incorporated in finalising the Regulations.
The Affordable Housing Programme (AHP) is one of President Uhuru Kenyatta’s “Big Four” Agenda items, which aims at ensuring that all Kenyans have access to decent and affordable homes.
The first batch of homes comprising of 388 units at Park Road Ngara of the AHP was handed by the contractor on January 16, 2020.
The project targets completion of 500,000 affordable housing units for Kenyans by 2022 which will be financed and built by private developers on both private and national and county government land.
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 the provision of homes to Kenyans in the lower and middle-income brackets.