Advisory Center for Affordable Settlements & Housing

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Document Type General
Publish Date 18/05/2023
Author State Department for Housing and Urban Development
Published By State Department for Housing and Urban Development
Edited By Saba Bilquis
Uncategorized

Affordable Housing Program

Affordable Housing Program, Boma-Yangu Project, Kenya

Affordable Housing Program, Boma-Yangu Project, Kenya

The document titled “Boma Yangu – Affordable Housing Agenda – Program Overview” outlines the Boma Yangu initiative, an ambitious affordable housing program in Kenya aimed at addressing the country’s housing deficit and providing accessible homeownership opportunities for low- and middle-income citizens. This initiative is part of the Kenyan government’s broader “Big Four Agenda,” which prioritizes affordable housing as a key component of national development.

Background and Rationale

Kenya faces a significant housing crisis, with a backlog of over 2 million housing units needed to meet the demand. Rapid urbanization and population growth have exacerbated this situation, leading to a growing number of people living in informal settlements. The Boma Yangu program seeks to bridge this gap by offering affordable housing solutions that allow citizens to own homes within urban areas, thereby improving living conditions and promoting economic stability.

Objectives of the Boma Yangu Initiative

The primary objectives of the Boma Yangu initiative include:

  • Increasing Homeownership: The program aims to facilitate homeownership among Kenyans, especially those in low- and middle-income brackets.
  • Providing Affordable Housing Options: By offering apartments starting from Ksh 1 million, Boma Yangu makes it possible for more people to access decent housing.
  • Enhancing Urban Development: The initiative promotes sustainable urban development by integrating affordable housing projects into existing urban frameworks.

Key Features of the Program

Application Process

To participate in the Boma Yangu program, individuals must be Kenyan citizens aged 18 or older. Registration can be completed online through the Boma Yangu portal or via the eCitizen platform. Applicants are required to provide their National Identity Card details for verification.

Savings Mechanism

Once registered, participants are encouraged to contribute to a savings fund through a USSD code. A minimum contribution of Ksh 2,500 is required to build up the 12.5% deposit necessary for purchasing an apartment. This approach facilitates gradual savings towards homeownership.

Financing Options

The program offers flexible payment options, including a rent-to-own scheme that allows buyers to pay off their homes over 25 years without interest charges. Alternatively, individuals can opt for traditional mortgages through the Kenya Mortgage Refinance Company.

Project Locations and Developments

Boma Yangu has several ongoing projects across various urban centers in Kenya, including Nairobi, Mombasa, Ruiru, Nakuru, and Athi River. Notable projects include:

  • Pangani Affordable Housing Project: Located near Pangani Police Station in Nairobi, this project features units starting at Ksh 1 million.
  • Kings Boma Estate: Situated in Ruiru, Kiambu County, offering one- and two-bedroom apartments priced from Ksh 1.5 million.
  • Buxton Point: Located in Mvita Constituency, Mombasa County, with units starting at Ksh 2.9 million.

These developments are strategically positioned close to social amenities such as schools, hospitals, and shopping centers, enhancing their appeal for potential homeowners.

Impact and Achievements

Since its inception, the Boma Yangu initiative has made significant strides towards improving access to affordable housing program in Kenya:

  • Over 334,152 applicants have registered on the platform.
  • Approximately 45,000 individuals have successfully become homeowners through the program.
  • The initiative has onboarded over 200 Micro, Small, and Medium Enterprises (MSMEs), contributing to job creation and economic growth.

Challenges and Future Directions

Despite its successes, the Boma Yangu program faces challenges such as land acquisition issues and ensuring consistent quality in construction. Moving forward, it aims to enhance stakeholder engagement and streamline processes to improve efficiency.

Conclusion

The Boma Yangu initiative represents a transformative approach to addressing Kenya’s housing crisis by making homeownership more accessible for low- and middle-income families. By combining innovative financing options with strategic urban planning, the program not only aims to provide affordable housing program but also fosters sustainable development across urban areas. As it continues to evolve and expand its reach, Boma Yangu stands as a critical component of Kenya’s efforts to achieve equitable housing for all its citizens.

Affordable Housing Program, Boma-Yangu Project, Kenya

Further reading: The Effects of Low-Cost Houses on Poverty Reduction: A Case Study of Moroke Village within Fetakgomo-Tubatse Municipality in Limpopo, South Africa
Boma Yangu Project – Affordable Housing Program in Kenya buyrentkenya
Boma Yangu: Making Housing Affordable for Kenyans

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