Kenyans have voiced their frustration after Lands Cabinet Secretary Alice Wahome clarified that contributing to the housing levy under the affordable housing programme does not guarantee homeownership.
Speaking on NTV’s Fixing the Nation programme on Wednesday morning, CS Wahome emphasized that the housing levy should not be mistaken for personal savings but should be seen as a tax.
“The money you are contributing is not supposed to give you a house; it is helping us build the house. After that, it is you who pays for that house,” Wahome explained.
She further elaborated, “Contributing to the housing levy does not guarantee owning a house under Boma Yangu. What you’re contributing is not your savings; it’s a tax. Just like the road levy, this is a pool that enables another Kenyan to own a home.”
Public Backlash Over Housing Levy Model
The affordable housing programme requires employees to contribute 1.5% of their salary, with employers matching the amount. The initiative aims to construct one million houses by 2027. However, Kenyans on X (formerly Twitter) have strongly criticized the model, calling it a potential loophole for corruption.
Antony Alexanderia Irungu questioned the programme’s efficiency, stating, “Introducing an extra tax to build houses for sale to the same taxpayers was a horrible idea. No wonder the target dropped from 200,000 houses per year to less than 1,000. Even the people behind the project can’t articulate its benefits clearly.”
Sam Njuguna added, “In due time, Kenyans will understand who the real beneficiaries of this housing scheme are—and it won’t be the ordinary citizen.”
Another user, Uncommonson, criticized the government’s messaging, stating, “The government initially framed the housing levy as a way for contributors to own affordable homes, implying direct benefits. Now they’re backtracking.”
Others went as far as comparing the levy to fraudulent schemes. “What a bogus explanation! They’re using my money to build a house that I won’t own unless I buy it. Sounds like a Ponzi scheme,” wrote Linda Oriedo.
How the Housing Programme Works
CS Wahome defended the initiative, explaining that the Affordable Housing Board manages the funds, assesses eligibility, and allocates homes accordingly. The government insists that the process remains transparent and targets low-income earners who struggle with decent housing access.
The model operates on a rent-to-own basis, where beneficiaries make monthly payments over a 30-year period. “With as little as Sh3,900 per month, one can own a studio apartment. No one is required to pay Sh640,000 upfront. The amount is spread over three decades to make homeownership affordable,” Wahome clarified.
She also emphasized that the programme is designed to uplift Kenyans in informal settlements. “We are not giving away houses for free. We are constructing homes that will be available to Kenyans on affordable rent-to-own terms,” she stated.
Challenges and Delays in the Housing Programme
Despite the government’s assurances, concerns persist over delays in project implementation. CS Wahome announced that 4,888 housing units would be released by the end of March 2025—two months behind schedule.
“Every quarter, between 4,000 and 5,000 units will be made available. The December 2024 allocation was delayed but will now be completed by March,” she assured.
In Mukuru, 1,080 units will be part of the first batch, with a total of 13,200 units planned for the area. Wahome also confirmed that under the Boma Yangu programme, homeowners will receive a 99-year lease title, renewable by the government.
“Once you complete your payments, the house is yours. The title functions like any other property title—you can sell or transfer it to your family,” she explained.
To prevent unfair allocations, each applicant is eligible for only one house to ensure that more Kenyans benefit from the initiative.
CS Wahome Urges Public Support
Despite widespread skepticism, CS Wahome called on Kenyans to support the affordable housing programme. “I would be happier to see greater support for this initiative. My duty is to ensure its success and that as many Kenyans as possible benefit,” she said.
With concerns about corruption, taxation, and transparency dominating the discussion, Kenyans remain divided on whether the housing levy will truly deliver affordable homes—or if it’s just another government project with unfulfilled promises.
