President William Ruto’s housing initiative has been set to make affordable housing accessible to ordinary citizens through the Affordable Housing Scheme. This initiative, the government claims, is designed to provide housing solutions to the common mwananchi.
The housing project’s goal is to construct 250,000 homes each year with prices ranging from Sh. 840,000 to Sh. 5.76 million. These homes are categorized into social, affordable, and market units, tailored to accommodate individuals from different income groups.
The policy shift, the government says, will enable individuals earning more than Sh. 150,000 monthly to participate in the State-funded housing program.
Affordable housing units will make up 50% of the total, market-rate apartments will comprise 30%, and the remaining 20% will fall under the category of social housing.
These units will be offered under the Tenant Purchase Scheme (TPS), with their pricing determined by the estimated construction cost, a 20% financing cost, and a markup that varies depending on the housing category.
The Ruto houses consist of studios, 2-bedroom and 3-bedroom apartments. Social units include 1-room, 2-room and 3-room homes for slum-dwellers. Market apartments will offer 2-bedroom and 3-bedroom houses.
1. Social Housing Units
These 1 to 3-room Ruto houses will primarily target slum dwellers. Their price ranges from Sh. 840,000 to Sh. 1.68 million.
A 20m² single room will go for Sh. 840,000 with the buyer expected to pay 10% of the amount upfront and clear the remaining balance over 30 years, with monthly payments of Sh. 3,200. After that, they will become the homeowners.
A 30m² two-room house will cost Sh. 1.26 million. The prospective owner will pay a deposit of Sh. 126,000 and monthly instalments of Sh. 4,800 monthly for 30 years.
A 40m² three-room house will go for Sh. 1.68 million, with Sh. 168,000 deposit and Sh. 6,400 monthly payments.
2. Affordable Housing Units
These consist of studios (bedsitters), and 2 and 3-bedroom apartments.
A 20m² studio apartment will cost Sh. 960,000, with buyers expected to pay Sh. 5,200 monthly on top of a Sh. 96,000 deposit.
A 40m² 2-bedroom house will go for SH. 1.92 million. A deposit of 192,000 and monthly payments of Sh. 10,400 for 30 years will follow.
A 60m² 3-bedroom apartment will cost Sh. 2.88 million; monthly payments of Sh. 15,600 and a deposit of Sh. 288,000 to occupy the house.
3. Market Housing Units
For the market-driven developments, there will be 2- and 3-bedroom houses.
The price of a 60m² 2-bedroom house will be Sh. 4.32 million, with a deposit of Sh. 432,000 and monthly payments of Sh. 31,300 for 30 years.
Homebuyers who choose to occupy an 80m² 3-bedroom apartment will make a deposit of Sh. 576,000 and pay Sh. 41,800 per month for 30 years. The total cost will be Sh. 5.76 million