As per Section 31 (1) of the 2024 Affordable Housing Regulations Draft, “In accordance with Section 54 of the Act, purchasers are not permitted to sell their affordable housing units until eight years have transpired following the completion of payment of the agreed price.”
Individuals who obtain their affordable housing units through mortgage arrangements are expressly barred from qualifying to sell these units.
The draft also specifies that if a buyer intends to sell their affordable housing unit after the specified eight-year duration, they must first provide the Affordable Housing Board with the opportunity to refuse the sale before listing the unit on the market.
“A purchaser of an affordable housing unit who intends to sell or agrees to sell the unit or any interest therein to any other person shall seek the consent of the Board in accordance with section 54 of the Act.” reads section 31 (1). This stipulation ensures that the board is granted priority as a potential buyer whenever an owner decides to sell a unit.
Additionally, Kenyans who make purchases of the affordable housing unit through mortgage financing and fall behind on scheduled payments for four consecutive months will be considered in default, as outlined in section 13 of the Draft Regulations. In such a scenario, the individual will be presented with three options to address the default situation.
Those seeking mortgage financing from the Affordable Housing kitty for constructing a rural home, as per Section 52 (4, b) of the Affordable Housing Act 2024, may face a borrowing limit of Ksh4 million if the current proposal is approved.
The regulations suggest setting the interest rate for financing from the affordable housing kitty at nine percent per annum. These regulations mark a significant step towards ensuring the success of the affordable housing initiative, setting a clear framework for participation and ownership within the program.
