You'll still pay for a house even after contributing housing levy: CS Wahome

Lands and Housing Cabinet Secretary Alice Wahome says Kenyans still need to pay to acquire homes under the government’s affordable housing project even if they have been contributing the housing levy.

President William Ruto introduced the project over what he called a need to meet poor Kenyans’ housing deficit and give youth job opportunities. It has seen salaried Kenyans part with 1.5 per cent of their monthly pay, matched by employers, since 2023.

Wahome said on Wednesday the contributions are towards putting up the houses, not early payment for the homes.

She said interested Kenyans must still get into a rent-to-own payment agreement of up to 30 years to acquire the houses.

“This money is not supposed to give you a house, it is what helps us build the house. After that, it is you who pays for that house,” told a Nation FM/NTV simulcast.

“We are not building to give them to you, it is for a rent-to-own agreement. Think of it as a tenant purchase scheme.”

But the minister still struggled to explain why such an agreement would not be considered a sale: “We are not selling them. You are owning [sic] the house to live in,” said Wahome, “Whatever house you pick, the payment period is 30 years. If you can pay in less time, you're most welcome.”

Asked why the government could not implement the project as a social protection scheme to cushion underprivileged Kenyans in informal settlements who cannot afford rent-to-own options but can rent at rates lower than what the market offers, Wahome said, “We must be practical and understanding.”

She added: “If this is open to everyone who requires decent housing at these low rates, I would not even start the construction. It will be a problem determining who to choose for the housing.”