The government has issued clarification on KSh2.56 billion withdrawal claims under the Boma Yangu savings scheme.
In a statement on July 21, the State Department for Housing and Urban Development said the amount reported as refunds includes different transactions grouped under one platform, including money transferred toward home purchases.
“The State Department for Housing and Urban Development has noted the article published in the Sunday Nation of 19 July 2026 on refunds under the Boma Yangu voluntary savings scheme. The State Department appreciates the coverage of the Affordable Housing Program and the article’s inclusion of the Department’s responses,” read the statemnt in part.
It said the classification created the impression that thousands of Kenyans were exiting the Affordable Housing Programme, yet a significant portion of the funds had been used to complete home purchases.
How Boma Yangu Savings Sallets Work
According to the government, Boma Yangu operates through a two-wallet system designed to help prospective homeowners save toward the deposit required to buy affordable housing units.
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Under the programme, a saver accumulates funds in a savings wallet. Once they identify a housing project they wish to purchase, savings can be transferred into a deposit wallet linked to the scheme.
If the saver is allocated a unit, the deposit is transferred to the relevant financier as part of the home purchase process. However, where demand exceeds available units and a saver is not allocated a house, the funds are returned to their wallet, allowing them to participate in another allocation cycle.
The department said the confusion arose because transactions moving out of savings wallets, including deposits successfully applied toward house purchases, were recorded using the same term, “refunds.”
It argued that a deposit used to buy a house should not be treated as a withdrawal from the programme since the saver remains part of the scheme and has achieved the intended goal of home ownership.
KSh1.76 billion recorded as home purchase deposits
According to the department, the total of KSh2,561,880,766 recorded as refunds by June 30, 2026, consists of two different categories of transactions.
A total of KSh1.76 billion represented savings applied as deposits for affordable housing purchases.
The department said the largest component came from buyers of units at Park Road, where 10% deposits were paid and remitted to the National Housing Corporation, the implementing agency for the project.
Other amounts were transferred to financiers handling different affordable housing projects, including the Affordable Housing Board.
The department said treating these deposits as evidence that Kenyans were abandoning Boma Yangu misrepresents the purpose of the transactions because the money was converted into home ownership.
Actual cash withdrawals, where savers chose to take their money out of the scheme, amounted to KSh803.3 million.
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Boma Yangu savings and users continue increasing
The State Department said broader programme statistics show continued growth in participation despite withdrawals by some savers.
Since the May 2025 audit period, cumulative savings on the platform have increased from KSh2.47 billion to KSh5.47 billion, with registered users growing from 1.02 million to 1.26 million Kenyans.
The department noted that about 30% of registered users are actively saving toward purchasing affordable housing units at any given time.
It also stated that withdrawals are an intentional feature of the scheme rather than a failure of the programme. Under Section 52(4)(a) of the Affordable Housing Act, 2024, voluntary
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