Housing PS says Sh2.56bn ‘withdrawals’ reflect home purchases, not exits

Jukwaa

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Speaking during a press briefing in Nairobi, Hinga rejected media reports suggesting contributors had withdrawn Sh2.56 billion from the scheme due to declining confidence, saying the figure largely represents savings converted into deposits after successful applicants were allocated affordable housing units.

“The figure of Sh2.56 billion described as refunds is based on the platform’s accounting terminology, which does not mean contributors withdrew from the programme,” Hinga said.

He explained that once a contributor secures a housing unit, their savings are transferred from the savings wallet to the property’s purchase account.

📌 What You Need to Know

Although the Boma Yangu system records the transaction as a withdrawal from the savings account, he said it reflects a conversion of savings into a legally binding home purchase deposit rather than an exit from the programme.

According to the Principal Secretary, Sh1.62 billion—about 63 per cent of the amount cited in the reports—was applied towards the purchase of homes under the Park Road Affordable Housing Project.

Hinga defended the Affordable Housing Programme as part of the government’s constitutional obligation under Article 43, which guarantees every Kenyan the right to accessible and adequate housing.

He also dismissed criticism of the programme, including claims that apartment living is incompatible with Kenyan lifestyles, saying such arguments misrepresent the country’s growing urban housing needs.

To underscore the programme’s progress, Hinga said the Kibaki administration delivered 822 housing units in Soweto, Kibera, while the Jubilee administration completed about 2,500 units against a target of 500,000.

He said the current administration has nearly 300,000 affordable housing units under construction nationwide.

📰 Source: Capital FM Kenya

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