Refunds from Kenya’s Boma Yangu housing savings platform reached Sh2.56 billion by the end of June 2026, equal to about 47% of the Sh5.47 billion mobilised through the voluntary savings scheme. The sharp increase shows that more prospective homeowners are exercising their right to recover deposits while the government continues expanding the Affordable Housing Programme.
The withdrawals do not involve the mandatory 1.5% housing levy. They relate to voluntary deposits made by applicants saving towards the minimum amount required before they can qualify for allocation. Under Kenya’s affordable housing laws, eligible savers who have not received a unit may withdraw their money together with accrued returns, subject to the applicable process and costs.
Key Overview
- Boma Yangu refunds increased from Sh788 million in May 2025 to Sh2.56 billion in June 2026.
- Total funds mobilised through the voluntary savings platform reached Sh5.47 billion.
- Net savings rose from Sh926.4 million to approximately Sh3 billion over the same period.
- Refunds therefore represent about 46.8% of cumulative funds mobilised.
- The law protects the right of an unallocated voluntary saver to withdraw after giving the required notice.
- Refundable Boma Yangu deposits are legally separate from the non-refundable housing levy.
Withdrawals Accelerate Despite Growth in Savings
The latest State Department for Housing figures show that refunds more than tripled within roughly 13 months. According to the new savings and refund data, withdrawals climbed by about Sh1.77 billion between May 2025 and June 2026.
Savings continued to grow during the same period. Net savings increased by about Sh2.08 billion to Sh3 billion, although refunds rose slightly faster than new contributions. Net savings include remaining deposits and investment income after refunds have been deducted.
This means the programme is still attracting and retaining money, but a substantial share of contributors are also choosing liquidity over continuing towards home allocation. The figures do not disclose how many refunds represent complete exits and how many deposits were transferred towards completed house purchases.
Voluntary Deposits Are Different From the Housing Levy
Confusion between the two funding streams can make the withdrawal figures appear broader than they are. Boma Yangu allows prospective homeowners to register, choose a preferred project and save towards the deposit required for allocation. The programme’s home-applicant guidance states that qualified applicants generally need savings equal to 5% of the preferred unit’s value before participating in allocation.
These voluntary deposits belong to individual savers. By contrast, the Affordable Housing Levy is a statutory charge used to finance the wider housing programme and is not maintained as a personal withdrawable savings account.
The Affordable Housing Act, 2024 provides that a person who has made voluntary savings but has not been allocated a unit may withdraw those savings after issuing 90 days’ written notice. The saver may alternatively remain in the scheme and seek allocation in a future cycle.
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Regulations Protect Savings and Accrued Returns
The withdrawal right was strengthened through the Affordable Housing Regulations, 2025, which require the Affordable Housing Board to refund voluntary savings together with accrued interest or profit, less any applicable administrative costs, and then close the saver’s account.
The legal framework therefore predates the withdrawal-system discussions reported in early 2026. Those discussions concerned making the refund process more accessible through the digital platform rather than creating the underlying right for the first time.
Current applicants can use the Boma Yangu portal to manage their housing savings and preferences. A saver who does not receive a unit may stay on the waiting list for a later allocation or initiate the applicable refund process.
Audit Reveals Rapid Change in Contributor Behaviour
A special audit covering July 2020 to May 2025 recorded Sh2.47 billion in voluntary contributions and Sh788.2 million in refunds. According to the audit findings reported alongside the latest figures, refunds increased from Sh177.5 million during the 2020/21 and 2021/22 financial years to Sh610.7 million between July 2022 and May 2025.
The Auditor-General also found that contributors’ funds had been invested in Treasury bills, generating approximately Sh345.7 million in investment income by May 2025. This income helps explain why refund rules refer not only to the original savings but also to accrued interest or profit.
The State Department argues that increased refunds demonstrate that the exit mechanism is functioning as designed. However, the pace of withdrawals also raises questions about household affordability, confidence in allocation timelines and whether applicants can consistently sustain the deposits required to secure a home.
What the Refund Surge Means for Affordable Housing
The refund data does not automatically indicate the failure of Boma Yangu. A transparent exit option may increase trust because contributors know their voluntary savings are recoverable if their circumstances change.
Still, refunds approaching half of all funds mobilised are an important signal. Programme administrators will need to show how many registered applicants are actively saving, how long allocation takes, how quickly refunds are processed and what share of deposits ultimately converts into occupied homes.
Clear reporting on those measures would help distinguish normal withdrawals from deeper affordability or delivery concerns. It would also give prospective homeowners a better basis for deciding whether to continue saving, wait for another project cycle or recover their funds.
Sources
Nation / Eastleigh Voice / Kenya Law / Boma Yangu
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