Lands and Housing Cabinet Secretary Alice Wahome has clarified that Kenyans contributing to the government's affordable housing levy will still need to pay separately to own homes under the initiative.
The Affordable Housing Project, introduced by President William Ruto, aims to address Kenya’s housing deficit while creating job opportunities for the youth.
Since 2023, salaried employees have been contributing 1.5% of their monthly income to the fund, with employers matching this amount.
Speaking on a Nation FM/NTV simulcast, Wahome explained that the levy is meant to finance the construction of houses, not serve as a down payment for homeownership.
"This money is used to build the houses, but individuals must enter a rent-to-own agreement of up to 30 years to acquire a home," she stated.
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She further emphasized that the scheme operates as a tenant purchase plan rather than an outright sale.
"We are not giving out houses for free. You will be paying to own the house over time," Wahome clarified.
Addressing concerns about providing social housing for low-income Kenyans in informal settlements, Wahome stated that a universal subsidy would make it difficult to determine eligibility reasonably.
"If we open this to everyone needing affordable housing at these rates, we wouldn’t even be able to start construction," she explained.
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