Kenyans earning below Ksh20,000 monthly income will be considered for a low-interest loan by the government to acquire a unit under the Affordable Housing Programme.
In the Draft Affordable Housing Regulations 2024, Clause 10 states that a Kenyan who cannot raise a deposit at the rate of ten per cent of the sale price is eligible to apply for deposit assistance.
Deposit Assistance is when the Affordable Housing Board provides a low-interest loan towards raising a deposit to purchase a housing unit.
However, Kenyans eligible for the provision must meet three conditions before an application is approved.
First, an individual must be earning a monthly income below Ksh20,000. Secondly, the applicant must demonstrate that the housing unit to be purchased will be their primary residence.
Third, the estimated amount one must pay monthly to offset the loan should be less than 30 per cent of their income.
Albeit, the regulations dictate that the person should prove to the Board that they can pay the deposit.
The application ought to be made in writing and provide relevant details including the applicant's monthly income, evidence of circumstances limiting their ability to raise the required deposit and any other information.
Upon receipt of the application, the Board will be required to decide and within 14 days, notify the applicant of the determination.
"Any monies paid as deposit assistance shall be repaid at a rate or administrative fee of zero percent," read part of the regulations.
The draft regulations are currently in the Public participation stage, requiring Kenyans to voice their recommendations to the Ministry of Lands.
If approved, the Board will implement the regulations to guide the Affordable Housing Act which was signed by President William Ruto on March 19, 2024.
