Kenyans earning Sh20,000 and below have a reason to smile following a government proposal to scrap the mandatory 5% deposit for the Affordable Housing Programme (AHP).
Housing Principal Secretary Charles Hinga revealed the plans, noting that the upfront cash requirement has been the biggest “roadblock” for low-income families dreaming of owning a home.
Removing the “Deposit Barrier”
During a recent interview on Citizen TV, PS Hinga admitted that even though many Kenyans have the monthly income to pay for a house, they simply don’t have the lump sum needed for a deposit.
Under the new arrangement, if you earn Sh20,000 or less, you won’t need to struggle with that 5% upfront payment. This applies to everyone whether you are in formal employment or working in the informal sector as a trader, artisan, or casual laborer.
How it Will Work
Instead of asking for cash at the start, the government is stepping in to help through the Affordable Housing Board.
- The Setup: The government provides “deposit assistance.”
- The Repayment: You pay back that deposit slowly and in small bits over time.
- The Goal: To make sure the high cost of living doesn’t stop you from getting a roof over your head.
Photo Courtesy Affordable Housing Projects
Why the Change?
This move follows a trend of the government trying to make the housing project more attractive. Just last July, the deposit was slashed from 10% down to 5%.
According to Sheila Waweru, the acting CEO of the Affordable Housing Board, the focus is now entirely on removing financial hurdles. PS Hinga added that “affordability” is relative what works for a middle-class earner doesn’t work for a mama mboga or a jua kali artisan.
A Boost for the Jua Kali Sector
Stakeholders in the housing sector have welcomed the news, calling it a game-changer for the informal economy. For millions of Kenyans who live hand-to-mouth but still want a permanent home, this 0% deposit plan could be the bridge they’ve been waiting for.
