Principal Secretary Charles Hinga has rejected reports that Kenyans withdrew KSh 2.56 billion from the Boma Yangu platform. He said most of the funds were used for deposits on homes outside the Park Road project. Only about 31.4 percent was actually withdrawn by savers.
Principal Secretary Charles Hinga addressed the press on July 22 to clarify figures reported by the Daily Nation on July 19. He stated that over two-thirds of the KSh 2.56 billion went toward deposits for new homeowners buying units outside the Park Road project. The remaining KSh 803 million, or 31.4 percent, represents actual withdrawals.
Hinga explained that some savers withdrew money for school fees while others acted out of panic after hearing opposition politicians threaten to scrap the housing levy. He noted that the scheme still shows net savings growth to KSh 3 billion from fresh contributions despite the outflows.
Hinga said the department consulted the Auditor General on the data and maintained that the Affordable Housing programme remains on track. The Auditor General had previously flagged that only about 30 percent of 1.26 million registered users are actively saving.