The Government of Kenya has announced a major policy shift aimed at improving access to affordable housing for low-income earners, waiving the deposit requirement for applicants earning Sh20,000 or less per month.
In a local interview on Citizen TV, Professor Charles Hinga, the Principal Secretary for Housing and Urban Development, explained that the move is designed to remove a key financial barrier that has long hindered low-income households from participating in the Affordable Housing Programme.
Under the revised arrangement, applicants with monthly earnings of Sh20,000 or below, whether in formal employment or the informal sector, will not be required to pay any upfront deposit when applying for housing units. Previously, applicants were required to pay a deposit as part of the qualification process.
“The deposit has been a big barrier, especially for people in the lower income brackets,” PS Hinga said, noting that the five percent deposit requirement still applies to other applicants earning above the Sh20,000 threshold.
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To support this initiative, the state will cover the deposit on behalf of qualifying beneficiaries through a structured assistance scheme managed by the Affordable Housing Board, allowing beneficiaries to repay the amount gradually. This is expected to make it easier for workers such as casual labourers, artisans and small-scale traders who often struggle to accumulate lump-sum payments — to secure a home.
The waiver builds on earlier reforms that reduced the housing deposit requirement from 10 percent to 5 percent in an effort to boost participation in the programme and enhance homeownership opportunities for ordinary Kenyans.
The policy is part of wider efforts by the government to ensure decent and affordable housing is within reach for a broader segment of the population.
