Kenyans who have received offer letters for homes under the Affordable Housing Programme do not have to start making monthly payments immediately if they are still waiting to be allocated and occupy their houses.
The State Department for Housing and Urban Development has clarified that applicants can wait until they receive their units before starting the monthly payments stated in their offer letters.
The clarification comes after some Boma Yangu applicants raised questions about whether getting an offer letter meant they were required to start paying every month, even when they had not yet moved into their homes.
According to the State Department, those who can afford it may continue putting money into their Boma Yangu accounts while waiting for allocation.
“Kindly note that you may continue saving towards your home if you are financially able to do so. However, there is no need to worry if you choose to wait,” the department said.
Boma Yangu said monthly payments for those under the Tenant Purchase Scheme (TPS) are tied to the financing agreement and not simply to the issuing of an offer letter.
Applicants must, however, pay a deposit before they can be allocated a house.
For social housing units, applicants are required to pay a deposit of five per cent, while those seeking affordable housing units must pay 10 per cent.
The deposit for market-rate units is different and depends on the terms set by the private developer.
After an applicant is allocated a house, they receive an offer letter showing the terms of the purchase. Those who qualify for the Tenant Purchase Scheme then sign a TPS agreement and begin paying according to the agreed terms.
The programme also allows applicants to make voluntary savings without a set limit. This means those who have the money can continue saving towards their homes even before allocation.
However, the State Department has not explained what happens to money saved before a house is allocated.
It remains unclear whether such savings will be used to reduce the outstanding balance, lower future monthly instalments, shorten the repayment period or simply remain as part of the applicant’s contribution towards the purchase.
For applicants still waiting for allocation, the latest clarification means receiving an offer letter does not by itself mean they must immediately start making the monthly housing payments.
