Boma Yangu explains why housing levy cannot be refunded

The government's Boma Yangu Affordable Housing platform has stated that housing levy contributions are not personal savings and cannot be refunded. The State Department for Housing explained that the levy funds the construction of affordable homes nationwide. However, voluntary affordable housing savings remain refundable.

The Boma Yangu Affordable Housing platform has responded to demands from some Kenyans for refunds of their housing levy deductions. In a statement, the State Department for Housing clarified, "The housing levy is not a refundable personal contribution. It is designed to ensure that housing remains affordable for all Kenyans."

The levy, established under the Affordable Housing Act of 2024, finances homes, roads, water, and electricity. Contributors benefit from below-market home prices, modern amenities, and financing options such as the Tenant Purchase Scheme and low-interest loans.

The department addressed reports of discounts for long-term contributors, stating there are no individual discounts. "There’s no direct individual discount. All buyers benefit from below-market pricing and access to affordable financing," it said.

Two weeks ago, Housing Principal Secretary Charles Hinga announced plans for refunds on voluntary savings after a March 26 meeting with parliamentarians. He noted collaboration with a telecommunications firm for a withdrawal platform, saying, “What you are saving towards house ownership is your money.”

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