Kenyans who make voluntary savings towards the 10 per cent deposit for President William Ruto's affordable houses will be able to get refunds should they fail to secure one.
As detailed in the Affordable Housing Bill 2023, it was revealed that one can save to raise the 10 per cent deposit which is required for one to be allocated a house.
However, owing to the anticipated demand for housing, one may fail to get a unit and prefer to have their money back.
"An agency shall open a separate bank account where voluntary savings shall be kept and any interest arising from the investment of voluntary savings shall be credited to this account. An agency shall issue an account number to each person making a voluntary saving."
"A person who has made a voluntary saving and has not been allocated an affordable housing unit and desires to withdraw his or her savings shall give a 90 days notice to the agency for a refund with accrued interest, if any," reads the proposed Bill in part.
The refunds will also take less than 90 days to be processed.
Monthly Payments
As detailed by Housing Principal Secretary Charles Hinga, affordable housing will be offered in three categories namely; Social, Affordable Housing Program (AHP) and Market.
Kenyans will also be able to own the homes through a rent-to-own option. This will entail the payment of a 10 per cent deposit and monthly instalments spread out over several years to enable one to meet the house value.
Social
The social housing units will be offered to low-income earners. The houses will have different units ranging from one-bedroom to three-bedroom houses.
One-bedroom houses will cost Ksh840,0000. The deposit to be paid for these units is 10 per cent (Ksh84,000). One will then be required to pay Ksh3,200 monthly until they finish paying for the house.
Two-bedroom units will go for Ksh1.2 million with the deposit set at Ksh126,000. The monthly payment for these houses will be Ksh4,800.
On the other hand, three-bedroom houses will go for Ksh1,680,000. Interested buyers will required to pay a deposit of Ksh168,000 before moving in. Subsequent monthly payments were set at Ksh6,400.
AHP
One-bedroom units in this category were listed to go for Ksh960,000. Occupants will be required to pay Ksh5,200 monthly after paying a deposit of Ksh96,000.
Two-bedroom houses will be priced at Ksh1.9 million while three-bedroom units will be sold for Ksh2.8 million.
Monthly payments for 2-bedroom houses after the 10 per cent deposit will be Ksh10,400. Occupants of three-bedroom houses, on the other hand, will be making monthly payments of Ksh15,600 after paying their deposits.
Market
Market houses will be bigger compared to those in the social and AHP category. This category will only have one and two-bedroom houses.
One-bedroom houses, 60 square meters in size, will be priced at Ksh4.3 million. The payment model will be set at Ksh432,000 for a deposit and a monthly payment of Ksh31,000.
Three-bedroom units on the other hand will be 80 square meters in size and cost Kenyans Ksh5.7 million. Monthly payments after the 10 per cent deposit will be Ksh41,000.
