- The State Department for Housing and Urban Development has clarified that monthly payments begin after a unit has been allocated and the homeowner takes occupation.
- Applicants who are still waiting for their units to be allocated can continue saving towards their homes if they are financially able to do so.
- For social housing units, the deposit is 5% of the unit's value, while affordable housing units require a 10% deposit.
Kenyans who have received offer letters for homes under the Boma Yangu affordable housing programme do not need to immediately start making their monthly housing payments if they are still waiting for allocation and occupation.
The State Department for Housing and Urban Development has clarified that monthly payments begin after a unit has been allocated and the homeowner takes occupation, in line with the terms outlined in the offer letter.
The clarification comes after applicants raised questions about whether receiving an offer letter meant they were required to start making monthly payments while waiting for their homes.
What happens after receiving an offer letter?
Applicants who are still waiting for their units to be allocated can continue saving towards their homes if they are financially able to do so. However, the government says there is no need to worry if they choose to wait.
There is also no cap on voluntary savings, meaning applicants can continue contributing while waiting for allocation.
For those purchasing through the Tenant Purchase Scheme (TPS), monthly instalments are linked to the financing agreement rather than simply being triggered by the receipt of an offer letter.
What about the deposit?
Applicants must first meet the required deposit before a house can be allocated.
For social housing units, the deposit is 5% of the unit's value, while affordable housing units require a 10% deposit. Deposits for market-rate units are determined according to the terms set by the private developer.
The latest clarification therefore gives Boma Yangu applicants a clearer picture of what happens between receiving an offer letter and moving into their home: an offer letter does not, by itself, mean monthly housing installments start immediately.
However, the State Department has not clarified how voluntary savings made before allocation will affect the outstanding balance, future installments or repayment period.
