- Housing PS Charles Hinga said the reported Ksh2.56 billion Boma Yangu withdrawals were misinterpreted, noting Ksh1.76 billion was used as deposits for affordable housing units while Ksh803 million was withdrawn.
- He said withdrawals were mainly for personal needs, such as school fees, or due to uncertainty over the programme, insisting the figures do not show Kenyans are abandoning affordable housing.
Principal Secretary (PS) for Housing and Urban Development Charles Hinga has clarified reports claiming that Kenyans withdrew Ksh2.56 billion from the Boma Yangu Affordable Housing Savings platform, saying the figure has been widely misinterpreted.
Speaking during a press briefing on July 22, Hinga explained that the Ksh2.56 billion highlighted in recent media reports does not represent funds that exited the Affordable Housing Programme. Instead, he said a significant portion of the money was redirected by savers towards the purchase of affordable housing units, while only a smaller share was withdrawn for personal use.
Hinga noted that more than two thirds of the Ksh2.56 billion was applied as deposits for affordable housing units beyond the Park Road project, meaning the funds remained within the government’s Affordable Housing Programme.
“We have Ksh803 million, which is 31.4 per cent, which is money that now has actually been withdrawn. Even in your home you withdraw money from important savings accounts when you need to,” said the PS.
Hinga’s remarks follow reports that refunds from the voluntary Boma Yangu savings scheme had reached Ksh2.56 billion, nearly half of the Ksh5.47 billion mobilised through the platform since its launch.
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The figures fuelled concerns that many Kenyans were opting out of the Affordable Housing Programme amid criticism over affordability and the mandatory housing levy.
However, the PS dismissed that interpretation, saying the Ksh2.56 billion does not represent money leaving the scheme.
He explained that about Ksh1.76 billion was converted into deposits for Kenyans purchasing affordable housing units, meaning only Ksh803 million was withdrawn by savers for personal reasons.
According to the PS, some contributors have withdrawn their savings to meet urgent financial needs, such as paying school fees, while others have been influenced by political rhetoric casting doubt on the future of the Affordable Housing Programme.
“As I said, you can withdraw school fees when they are due. And people also withdraw when they get spooked. When they hear politicians say that they will kill the housing project when we come in, people panic, and they withdraw the money because they don’t want to lose their money,” said Hinga.
He maintained that the Ksh2.56 billion figure does not indicate that Kenyans are abandoning the programme, but instead reflects a combination of deposits used for home purchases and legitimate withdrawals made to meet personal financial needs.
By Frank Mugwe
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