Teachers promised 20 pc? What the law says on allocation of Boma Yangu units

The 228 completed units out of 1370 being constructed by government at Parkroad Nairobi, under the affordable housing programme on Friday, March 2020. [File, Standard]

President William Ruto has been dangling the promise of affordable housing as a political carrot.

The latest is his pledge that teachers will receive 20 per cent of the units under construction because of their significant monthly contributions to the housing levy.

But beyond the campaign pledges, what does the law actually say about who qualifies for the houses and how they are allocated?

According to the Affordable Housing Regulations, allocation is not a discretionary process tied to specific professions or groups.

Instead, the eligibility of the people being allocated the houses is anchored on clear legal requirements.

To apply for a unit, a person must be a Kenyan citizen aged 18 years and above, and must not have previously benefited from the scheme.

Applications are made through the Boma Yangu platform by registering with a valid national identification card or alternative identification such as a passport or military ID.

Applicants must also provide proof of income, a passport photo, and where relevant, additional documents such as disability cards or slum upgrading identifiers.

Once registered, each applicant receives a unique identification number linked to the Boma Yangu e-wallet, where they are required to save.

To qualify for allocation, one must have contributed at least 12.5 per cent of the value of the house they are applying for.

The law further states that allocation is conducted through a lottery system run by the State Department for Housing and Urban Development.

The process is designed to be “regular, fair and transparent, free of any human intervention,” according to the official Boma Yangu portal.

The units are also restricted to first-time homeowners, and beneficiaries must intend to occupy the property rather than resell or rent it out. Registration must be accompanied by at least Sh200 deposited in the Boma Yangu e-wallet.

Applicants not allocated due to high demand are placed on a waiting list and prioritised in subsequent rounds.

Applicants who qualify can access subsidised home loans at single-digit interest rates through a shared mortgage form that connects them to multiple financiers.

They may also opt for the Tenant Purchase Scheme (TPS), which allows them to pay rent-like instalments for up to 25 years.

Upon successful allocation, home applicants receive a letter of offer and must decide how to pay off the balance.

Those paying cash sign a sale agreement, while those on mortgage or TPS sign the respective agreements.

Once the project is completed, successful homeowners receive their title deed and can occupy their units.

The regulations indicate that when developing the housing scheme, the Affordable Housing Board shall ensure there is equitable access to diverse groups and persons in the construction, allocation, management and maintenance of the affordable housing projects.

House prices under the programme vary depending on size. A bedsitter sells from Sh640,000 under social housing, Sh1.5 million for a one-bedroom unit, Sh2.4 million for a two-bedroom, and Sh3.6 million for a three-bedroom house.

Notably, the law makes no provision for reserving a specific quota of houses for certain professions, sectors, or groups.

Instead, all Kenyans who meet the criteria and participate in the contribution scheme are expected to compete on equal footing through the lottery system.