Nearly half of the Sh5.47 billion mobilised through the Boma Yangu platform has been refunded to contributors after more Kenyans chose to withdraw their savings.
The increase in withdrawals comes as more contributors who had signed up to buy government affordable houses exit the programme by requesting their savings back.
By May last year, refunds through the platform stood at Sh788 million but have since more than tripled. During the same period, net savings increased from Sh926.4 million to Sh3 billion, although refunds grew at a slightly faster rate compared to fresh contributions.
A special audit of the Boma Yangu portal covering July 2020 to May 2025 showed that refunds to prospective buyers under the Affordable Housing Programme had increased three-and-a-half times since President William Ruto took office.
The audit found that voluntary contributions during the final two years of former President Uhuru Kenyatta’s administration amounted to Sh1.33 billion, compared with Sh1.14 billion collected between July 2022 and May 2025.
However, 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.
“Between the 2020/21 and 2024/25 financial years, a total of Sh2,467,694,080 was received as voluntary contributions under the Boma Yangu Scheme. Out of this amount, Sh788,195,690 was refunded to prospective homeowners,” Auditor General Nancy Gathungu says in the report.
The latest figures from the State Department show that refunds have since risen from Sh788 million to Sh2.56 billion, while net savings have grown to Sh3 billion.
The net savings represent contributors’ deposits together with investment income after deducting refunds paid to those who opted out of the programme.
The audit showed that the 2024/25 financial year recorded the highest annual refunds at Sh285.6 million, while the highest annual contributions were recorded in 2020/21 when savers deposited Sh741 million.
Fresh data from the State Department indicates that the 2025/26 financial year recorded the biggest increase, with refunds rising by Sh1.77 billion and net savings growing by Sh2.08 billion since May last year.
By December 13, 2025, Boma Yangu had collected Sh3.84 billion in voluntary savings, out of which Sh2.24 billion had been withdrawn. Registered users increased from 1.02 million to 1.26 million.
The State Department has maintained that the rising refunds do not mean the housing savings scheme has failed.
“Refunds are not a defect of the scheme; they are the scheme working as designed. The law gives every voluntary saver who has not been allocated a unit the statutory right to withdraw their savings, with accrued interest, on 90 days’ written notice,” it said.
The department said the refund figures include contributors who withdrew their savings and those whose deposits were applied towards purchasing affordable housing units.
However, it did not provide details showing the number of contributors in each category.
Under the Affordable Housing Regulations, 2025, voluntary savers who have not been allocated a housing unit can withdraw their savings together with accrued interest or profit, after deduction of applicable administrative costs.
The increase in withdrawals has raised questions about the uptake of the Affordable Housing Programme, which is a key government project, with more than 270,000 housing units currently under construction.
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