NAIROBI, Kenya – Low-income Kenyans earning Sh20,000 and below per month will no longer be required to pay the mandatory five per cent deposit when applying for houses under the government’s Affordable Housing Programme, in a move aimed at unlocking home ownership for millions.
Housing Principal Secretary Charles Hinga announced the new policy, saying the government will now fully cover the deposit for applicants within this income bracket through a structured assistance mechanism.
Speaking during a Citizen TV interview, Hinga said the upfront deposit had emerged as one of the biggest obstacles to home ownership, particularly for low-income households that can afford monthly repayments but struggle to raise lump-sum amounts.
“What is affordable depends on the size of your pocket. We have established that the deposit is a major barrier, especially for those in the lower income brackets. If you earn Sh20,000 and below — whether in formal or informal employment — there will be no deposit,” Hinga said.
Under the new framework, eligible applicants will access homes without paying any upfront deposit, with the state stepping in to finance the amount through the Affordable Housing Board.
Beneficiaries will then repay the assisted deposit gradually under flexible terms.
The policy is expected to significantly benefit workers in the informal sector, including casual labourers, traders and artisans, who often lack access to conventional mortgage financing despite earning steady incomes.
The announcement builds on earlier reforms introduced in July, when the government reduced the deposit requirement from 10 per cent to five per cent under a Deposit Assistance initiative.
During a public engagement in South B, Nairobi, on July 2, Affordable Housing Board acting CEO Sheila Waweru said the programme was continuously evolving to remove financial barriers.
“Reducing the deposit requirement allows more people, especially those at the bottom of the economic pyramid, to qualify for a home,” Waweru said.
Housing sector stakeholders have welcomed the move, saying it could unlock home ownership for millions previously excluded due to strict entry requirements.
The government has urged eligible Kenyans to register and update their details on the Boma Yangu platform as demand for affordable housing units continues to rise.
The Affordable Housing Programme targets low- and middle-income households and aims to reduce the country’s housing deficit while stimulating economic growth through job creation and wealth building.
Homes are offered through mortgage and rent-to-own options, and are categorised as:
- Social housing – for earners below Sh20,000
- Affordable housing – for earners between Sh20,000 and Sh149,000
- Affordable middle-class housing – for earners above Sh149,000
Available units range from studio apartments to one-, two- and three-bedroom houses, priced between Sh640,000 and Sh2.9 million.
Registration is done via the official Boma Yangu portal using an eCitizen account.
