The government, through its Boma Yangu Affordable Housing platform, has responded to growing concerns from Kenyans who have been asking whether they can get back the money deducted from their salaries as housing levy contributions.
In its clarification, the State Department for Housing explained that the housing levy is not refundable, stressing that the deductions are not treated as personal savings but as a statutory contribution meant to support the country’s affordable housing agenda.
In a short but clear statement, the department said the levy was established to help the government build decent and affordable homes for Kenyans across the country.
Officials explained that the main purpose of the fund is to make home ownership easier and cheaper for ordinary citizens, especially low- and middle-income earners who may not afford houses at normal market prices.
According to the department, the housing levy should not be confused with a personal savings account where contributors can withdraw their money whenever they wish.
Instead, it is a tax collected under the Affordable Housing Fund and is used to finance a wide range of infrastructure and support services linked to housing projects.
This includes the construction of houses, roads within housing estates, water connections, electricity installation, sewer systems, and other key social amenities that make the homes livable.
“The housing levy is not a refundable personal contribution. It is meant to keep housing affordable and accessible for all Kenyans,” the statement explained.
The government further defended the levy by noting that the money collected plays a bigger role beyond simply putting up houses. It helps to stabilise home prices, create jobs in the construction and building materials sector, and improve access to decent and modern living spaces for many families.
Officials added that the programme also boosts economic activity by creating opportunities for contractors, engineers, fundis, suppliers, and many young people employed at construction sites.
In addition, the department said contributors still enjoy several indirect benefits from the levy even though the money itself is not refundable.
Among the key advantages mentioned are access to homes sold below normal market prices, availability of modern social amenities, and affordable financing plans such as the Tenant Purchase Scheme, which allows buyers to pay gradually over time.
Contributors may also qualify for low-interest home loans designed to make ownership easier.
The State Department also addressed reports suggesting that Kenyans who have contributed to the levy for a longer period may receive special discounts when purchasing houses under the programme.
In its response, the department dismissed those claims, saying there are no individual discounts tied to the length of contribution.
Instead, it clarified that all successful applicants benefit equally from the same subsidised pricing structure.
“There is no direct discount based on how long one has contributed. Every qualified buyer enjoys below-market prices and affordable financing options,” the department stated.
As part of its defence of the policy, the government said the housing levy is protected under the Affordable Housing Act, 2024, which provides the legal framework for how the money is collected and used.
The department assured Kenyans that the fund is subject to regular audits and accountability checks to ensure the money is spent strictly according to the law and only on approved housing-related projects.
Kenyans who want to confirm how much they have contributed were advised to check their monthly payslips if they are formally employed. Self-employed contributors, on the other hand, were encouraged to review their tax records and filings to track their payments.
Even as the government maintained that the mandatory 1.5 per cent housing levy remains non-refundable, it made an important distinction between the levy and voluntary affordable housing savings.
Officials clarified that while the levy deductions cannot be refunded, any extra savings made voluntarily toward house ownership remain the personal property of the contributor and can be withdrawn.
Government Plans to Refund Voluntary Affordable Housing Savings
This clarification comes just weeks after the government announced plans to allow Kenyans who choose to exit the Affordable Housing Programme to withdraw their voluntary savings.
The issue was discussed during a meeting held on March 26 between the Parliamentary Committee on Housing and officials from the State Department for Housing.
During the session, lawmakers raised several concerns about the implementation of the housing programme, including questions around contributors’ access to their personal savings.
While appearing before the MPs, Housing Principal Secretary Charles Hinga said the government was already working with one of Kenya’s leading telecommunications companies to develop a smooth and user-friendly system that will allow contributors to withdraw their voluntary savings without difficulties.
“What you are saving towards house ownership is your money. We are putting in place a platform with the telecommunications company to allow Kenyans to withdraw their funds,” Hinga told the committee.
The planned system is expected to make the withdrawal process seamless and transparent, especially for Kenyans who may decide not to continue with the programme or those who want to redirect their savings to other priorities.
The latest clarification is likely to settle confusion among many Kenyans who have been mixing up the mandatory housing levy and voluntary housing savings, two separate components of the affordable housing programme that operate under different rules.
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