Kenyans enrolled in the Affordable Housing Programme through Boma Yangu have been advised on when to begin making monthly payments after receiving an offer letter for a housing unit.

🇰🇪 Breaking It Down

The State Department for Housing and Urban Development said applicants who have received offer letters but are still awaiting allocation and occupation do not need to start making monthly housing payments immediately.

However, those who can afford to continue making payments towards their homes may do so while awaiting allocation.

“Kindly note that you may continue saving towards your home if you are financially able to do so. However, there is no need to worry if you choose to wait,” the State Department said.

📌 What You Need to Know

The clarification followed mounting questions from applicants who sought the department's position on whether they should continue saving after receiving an offer letter or start paying monthly rent while waiting to occupy their homes.

According to Boma Yangu, applicants can await allocation and occupation of their units, after which they will begin making the monthly payments outlined in their offer letter.

It is worth noting that for one to be allocated a house, they must first pay a deposit, depending on the type of housing unit they desire, whether it is affordable, social, or market-rate units.

To receive an offer letter, you must first pay a 5 per cent deposit for a social housing unit and 10 per cent for an affordable unit. In contrast, the deposit for market-rate units is determined by the private developer's terms.

Once a house is successfully allocated, they receive a letter of offer and choose how to settle the outstanding balance . Those qualifying for the Tenant Purchase Scheme (TPS) sign a TPS agreement.

For TPS beneficiaries, the monthly installments are therefore linked to the financing agreement rather than being triggered by the applicant receiving an offer letter.

📰 Source: Kenyans.co.ke