The tenant purchase scheme with fixed, low-interest rates below 9 per cent per annum.
The different tiers in the Affordable Housing Programme are meant to ensure that the plan addresses the diverse housing needs.
In a brief, the Ministry of Lands, Public Works, Housing, and Urban Development says the programme targets the most vulnerable as well as those seeking upscale options.
"This approach offers housing at a price that allows payments to be no more than a 1/3 of one's monthly pay, ensuring everyone, regardless of their income, benefits from the affordable housing programme."
The ministry says repayment from home owners will ensure the affordable housing fund continues to fund the initiative by giving Kenyans an opportunity to own a home and live a dignified life.
The social housing in the first tier focuses on providing basic and affordable shelter to the most vulnerable populations.
They are primarily aimed at low-income earners and those living in the informal settlements.
The purchase price for social housing ranges from Sh640,000 to Sh1,280,000 with monthly payments ranging from Sh3,900 and Sh6,800.
The income band for the social housing is Sh19,999.
The ministry says the social housing homes provide a secure and affordable foundation for a brighter future by making one's monthly payment as manageable as rent.
"The aim is to make home ownership both accessible and realistic through deposit assistance and tenant purchase scheme."
The houses under social housing are ethically smaller units with one to three rooms and with basic amenities such as clean piped water, electricity, and efficient gas reticulation.
The other tier is affordable housing, which focuses on the broader segment of the population.
The affordable housing targets middle-income earners and are priced below the affordable markets rates.
The purchase price for the affordable housing ranges from Sh 1,000,000 and Sh 3,200,000 with monthly payment of Sh 7,250 and Sh23,128.
The income band for the affordable housing is between Sh 20,000 and Sh 149,999.
Those interested in affordable housing can choose from payment options such as cash, home loans from banks.
Affordable housing has a wider range of unit sizes (studios to 3-bedroom apartments), improved amenities and finishes enriched with schools, hospitals, and comprehensive infrastructure that supports lifestyle and well-being, and are market-driven pricing though still considered affordable compared to the private market.
The tenant purchase scheme with fixed, low-interest rates below 9 per cent per annum.
The other tier of the housing imitative is market-rate affordable housing which targets the overall housing market, prices are higher and based on the going market rate.
Targeted under this tier are higher-income earners with residences blending comfort with convenience, offered at competitively priced rates.
Market-rate affordable housing units purchase price ranges from Sh 2,400,000 to Sh 5,400,000.
The monthly payment is between Sh 21,160 and Sh 47,610.
The income band is up to Sh 150,000 and above.
Some of the characteristics of market-rate affordable housing units include high-end finishes, larger units, and more luxurious modern amenities including schools, hospitals, lush green spaces, and enhanced infrastructure like high-speed internet.
The Affordable Housing Programme (AHP) is an initiative by the government that targets the delivery of decent and affordable housing to low and middle-income households who have been traditionally underserved by the market.
Several affordable housing projects are nearing completion with 24 project sites offering 4888 units for sale across the country.
Under the affordable housing programme, all Kenyans above the age of 18 can benefit from the scheme.
The programme therefore has a one ID, one home policy which will be enforced.
Those interested may register by dialing *832# or log onto the Boma Yangu platform www.bomayangu.go.ke or by visiting the Boma Yangu desk at the Huduma Centers countrywide.
Once registered, activate they should activate their account with Sh200 and start their journey of selecting and saving for a deposit on the housing unit selected.
The amount payable for the house will depend on the type of house selected and allocated, however prices are in accordance with the Affordable Housing Act.
The pricing per unit may vary from one geographical location to another, though the unit cost will be significantly lower than the prevailing market value in that region.
Houses will be allocated through a fair and transparent system, free of any human intervention or contact, on a “first past the post” basis.
This means that those qualified for allocation will be ordered on a list by the date and time when they fulfilled all the requirements for allocation including saving for the deposit.
The ministry says all occupants get equal rights to purchase and own a home under the program, including the protected and affirmative action groups, those living with disabilities, youth, women, the elderly.
A sectional title will be provided to buyers as proof of ownership, once the house is fully paid for.
When one purchases an affordable home under the program, they own the house even if it has been built on Government land, as long as they have completed payment.
In the event of death, the housing unit can be transferred to the registered next of kin as per normal probate proceedings.
