No Home Guarantee Under Housing Levy, Says Kenya's CS Wahome

Lands Cabinet Secretary Alice Wahome has sparked a significant backlash among Kenyans following her recent remarks regarding the affordable housing programme's housing levy.

During an appearance on NTV's "Fixing the Nation," Wahome clarified that contributions made towards the housing levy should be regarded as a tax rather than a savings plan, asserting that such contributions do not guarantee contributors ownership of a house. This statement has triggered a wave of criticism on social media platforms, with numerous users expressing their discontent. The Housing Levy mandates that employees contribute 1.5% of their salary, which is matched by employers, to support the government's aim of constructing one million houses by 2027.

However, Wahome’s assertion that these contributions do not lead directly to homeownership has intensified public frustration. Critics are raising concerns about the potential for corruption within the financing model and questioning its overall effectiveness. Social media commentator Antony Alexanderia Irungu points out a notable decline in the number of houses constructed annually, while another user, Sam Njuguna, questions who would ultimately benefit from the scheme.

Linda Oriedo draws a comparison to a Ponzi scheme, challenging the fairness of utilizing public funds to build homes that participants would still need to purchase. In defence of the programme, Wahome says that the funds will be managed transparently by the Affordable Housing Board, which is responsible for overseeing the allocation of housing units. She reiterates the government's commitment to accountability and its primary goal of providing decent housing for low-income Kenyans. The Housing Levy aims to implement a rent-to-own model, allowing beneficiaries to make monthly payments over a span of 30 years.

Monthly payments for housing units are expected to start at Sh3,900 for a studio apartment, thereby promoting accessibility for those in informal settlements and low-income areas. Wahome also emphasizes that the programme prioritizes affordable housing units instead of larger homes, such as three-bedroom houses, due to the high demand and the need for equitable distribution. She calls on Kenyans to support the initiative, expressing hopes for a more comprehensive appreciation of its potential advantages.

Looking ahead, the government plans to release 4,888 housing units by March 2025, acknowledging a two-month delay from the original timetable. Under the Boma Yangu programme, which encompasses the affordable housing initiative, homeowners will receive a 99-year lease title that can be renewed and transferred. After payments are completed, they can sell or bequeath their homes. To ensure fairness, each applicant will be eligible to apply for only one housing unit.