The State Department for Housing and Urban Development has dismissed reports suggesting that contributors to the Affordable Housing Programme withdrew Ksh2.56 billion due to a lack of confidence in the initiative.
On Wednesday, July 22, Housing and Urban Development Principal Secretary Charles Hinga and Affordable Housing Board CEO Joe Mutugu explained that the amount largely reflects the use of Boma Yangu savings in the home purchase process rather than contributors leaving the programme.
"Reports suggesting that contributors have withdrawn Ksh2.56 billion from the Affordable Housing Programme due to a lack of confidence are misleading.
"Earlier today, Housing and Urban Development Principal Secretary Charles Hinga, together with the Affordable Housing Board CEO Joe Mutugu, clarified that the reported amount largely reflects Boma Yangu savings being applied towards the purchase of affordable homes, not contributors exiting the programme," the department said.
The government further explained that once a contributor is successfully allocated a unit, the savings accumulated in their Boma Yangu account are transferred and applied towards the purchase of the home.
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"When a homeowner is successfully allocated a unit, their savings are transferred from their Boma Yangu account and used as part of the purchase process," the department added.
The State Department noted that although the transaction is recorded as a withdrawal from the contributor's savings wallet, it should not be interpreted as a refund or an indication that the contributor has abandoned the programme.
"While this is recorded as a "withdrawal" from the savings wallet, it represents the fulfilment of the homeownership journey, not a refund or withdrawal from the programme," the department further said.
Elsewhere, Interior Principal Secretary Raymond Omollo has issued an update on the ongoing construction of the Alego Usonga Affordable Housing Project in Siaya County.
In a statement earlier Wednesday, Omollo said the construction of the project, which was launched in April 2024, is currently at the superstructure stage.
"Construction has now reached the superstructure stage, with the reinforced concrete framework of the buildings fully in place," read part of the statement.
Omollo noted that the project is expected to deliver 882 housing units across six high-rise blocks, comprising social, affordable and market-rate housing to serve different income groups.
The project also includes a nursery school, a community clubhouse and a commercial centre with 18 stalls, creating a well-planned and inclusive living environment.
Omollo also highlighted that the Alego Usonga Affordable Housing Project is already creating jobs directly and indirectly for the locals.
According to Omollo, the project is stimulating local enterprise, enhancing skills and putting money into the hands of ordinary Kenyans.
"The project is a major source of jobs and income for local residents. Hundreds of workers have been engaged directly on site, while many others are benefiting through the supply of materials, transport, food services and other support businesses," he added.
