🔒 Fixed Rate 📈 Variable Rate 🏛️ Government Schemes 🏗️ Construction 🌍 Land Purchase

Why Consider Government Housing Schemes?

Government housing schemes offer affordable home ownership options for Kenyans who might not qualify for traditional bank mortgages. Benefits include:

💰 Affordable Housing Levy (AHL): Since 2024, employees and employers each contribute 1.5% of gross salary to the Affordable Housing Fund. This levy funds the AHP and helps you build your housing benefit.

Quick Comparison of Government Schemes

SchemeTarget AudienceInterest RateDepositTerm
AHP
Affordable Housing Programme
First-time buyers, general public Subsidized (market-linked) 5% Up to 30 years
CSHSF
Civil Servants Scheme
National government civil servants only 4% None (job as collateral) 20 years or retirement
NHC TPS
Tenant Purchase Scheme
General public Affordable rates 10% Up to 14 years
KMRC
Mortgage Refinance
Indirect (via banks/SACCOs) Single-digit (9-12%) Standard bank rate Standard bank term
KMGT
Mortgage Guarantee
Informal sector, irregular income Market rate (risk-shared) Reduced requirements Variable
⚡ Most Accessible

Affordable Housing Programme (AHP)

Managed by: State Department for Housing and Urban Development

Target: Low and middle-income Kenyans, first-time home buyers

Key Features

How to Apply for AHP

  1. Register on Boma Yangu portal — Use ID number and phone number
  2. Select preferred location and unit type — Choose from available projects
  3. Make contributions to Affordable Housing Fund — Monthly levy builds your housing benefit
  4. When project nears completion, express interest — Submit application for specific unit
  5. Ballot allocation — Transparent, randomized selection process
  6. Complete purchase — Via mortgage or Tenant Purchase Scheme (rent-to-own)

Completed AHP Projects

💡 Pro Tip: Register on Boma Yangu even before you're ready to buy. Your housing levy contributions accumulate and improve your eligibility for future units.

💰 Best Interest Rate

Civil Servants Housing Scheme Fund (CSHSF)

Managed by: State Department for Housing

Target: National government civil servants ONLY

Key Features

Eligibility Requirements

💰 Savings Example: On a KES 4.5M loan over 20 years, a 4% rate saves you over KES 5,000,000 in interest compared to a 14% bank mortgage!

⚠️ Important: This scheme is ONLY for national government civil servants. County government employees do NOT qualify.

🏠 Rent-to-Own

National Housing Corporation (NHC) Tenant Purchase Scheme

Managed by: National Housing Corporation

Target: General public

How Tenant Purchase Scheme (TPS) Works

Example: Kakamega Amalemba Estate

Contact Information

💡 Pro Tip: NHC properties are often priced below market rates. Check their website regularly for new project announcements.

🏦 Enables Cheaper Bank Rates

Kenya Mortgage Refinance Company (KMRC)

Role: Refinances mortgages issued by primary lenders (banks, SACCOs, microfinance institutions)

Impact: Enables lenders to offer single-digit interest rates to end-borrowers

How KMRC Helps You

Achievements to Date

📌 Tip: Ask your bank or SACCO if they are KMRC-accredited. If they are, you may qualify for single-digit interest rates (9-12%) instead of standard rates (13-15%).

👥 For Informal Sector

Kenya Mortgage Guarantee Trust (KMGT)

Purpose: Risk-sharing facility to de-risk lending to underserved groups

Target: Informal sector workers, small business owners, irregular income earners

Who Benefits?

How It Works

💡 Pro Tip: If you're self-employed or work in the informal sector, ask participating banks about KMGT-backed mortgages. You may qualify with alternative proof of income (mobile money statements, savings records, business receipts).

📜 SACCO Housing Guarantee Bill (2023)

The SACCO Housing Guarantee Bill was published to support SACCOs in providing housing loans to their members.

Key Provisions

⚠️ Status Update: While the bill aims to strengthen SACCO housing lending, typical SACCO loan amounts remain relatively small (KES 5-20M) compared to direct bank mortgages.

How to Apply for Government Housing Schemes

General Application Steps

  1. Identify the right scheme for you — Based on your employment status and income level
  2. Register on the relevant platform — Boma Yangu for AHP, CSHSF for civil servants, etc.
  3. Gather required documents — ID, KRA PIN, proof of income, employment letter
  4. Make contributions (if applicable) — AHP levy contributions improve your chances
  5. Express interest when project is announced — Submit application within deadlines
  6. Participate in balloting (if applicable) — AHP uses transparent randomized selection
  7. Complete purchase — Deposit, mortgage, or tenant purchase agreement

💡 Pro Tip: For AHP, register on Boma Yangu immediately — your levy contributions and registration duration improve your ballot priority.

Frequently Asked Questions

What is the Affordable Housing Levy (AHL)?

Since 2024, employees and employers each contribute 1.5% of gross salary to the Affordable Housing Fund. This levy funds the AHP and helps you build housing benefit credits.

Can county government employees access CSHSF?

No. CSHSF is strictly for national government civil servants only. County employees should explore county-level schemes or AHP.

How do I check my AHP ballot results?

Log into your Boma Yangu account. Results are published on the portal and via SMS notification.

Are KMRC rates for everyone?

KMRC doesn't lend directly to individuals. However, any customer of a KMRC-accredited bank or SACCO may benefit from the single-digit rates passed down by the lender.

What if I'm self-employed — can I still qualify for government schemes?

Yes. The KMGT is specifically designed for informal sector workers and self-employed individuals. Some AHP units also accept self-employed applicants with alternative income proof.

🏠 Ready to explore your options?

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