By J, KNA
Civil servants have been urged to take advantage of the Civil Servants Housing Scheme Fund (CSHSF), a government facility designed to provide affordable mortgage and loan facilities for home ownership.
National Housing Council-Head of Legal Affairs, Charity Kagiri, lamented that though CSHSF offers several incentives to make home ownership more accessible, the uptake was still low.
Speaking during a public participation session by civil servants on draft amendments to improve the fund’s regulations held at the Rift Valley Regional Commissioner’s plenary hall, Kagiri indicated that the scheme aims to address the challenge where many public sector workers struggle to access private market mortgages due to high interest rates.
She noted that loans are provided at a highly competitive interest rate of 5 percent per annum on a monthly reducing balance.
The Civil Servants (Housing Scheme Fund) Regulations serve as the legal framework for providing affordable mortgage and rental options to government employees in Kenya.
State Department for Housing and Urban Development has initiated the process of reviewing and amending the regulations.
“We have invited all civil servants, police and prison officers countrywide to provide suggestions, views, inputs and justification on the draft amendments, which will inform changes thereof,” stated the legal officer.
Kagiri explained that eligible civil servants can access loans ranging from Sh4 million to Sh20 million, depending on their job designation and ability to pay adding that applicants are required to provide a down payment of only 10 percent, with the government facilitating up to 90 percent of the property value.
“Loans can be repaid over a period of up to 20 years or until the borrower reaches the mandatory retirement age of 60,” she added.
The Fund is seeking to expand its mandate to include financing for home improvements, renovations and the purchase of plots for future development, which were previously restricted.
Proposed amendments allow for consideration of other regular income sources of the applicant and/or spouse.
Kagiri affirmed that the CSHSF remains a key component of the government’s efforts to move away from direct housing provision to facilitating ownership, with ongoing efforts to make the regulations more flexible.
She described the review as strategic and aimed at addressing historical performance issues and expanding its mandate to meet modern demands.
Kagiri indicated that the future of the fund is now closely tied to the broader National Affordable Housing Programme (AHP), with the government increasingly using these initiatives to house civil servants.
Nakuru County Director of Housing Nicholas Ogajo, reaffirmed the government’s commitment to providing decent, affordable housing, marking it as a core pillar of the Bottom-Up Economic Transformation Agenda (BETA) for 2022–2027.
Ogajo said under President Dr. William Ruto, the initiative aims to construct 200,000 housing units annually, with a goal to create 1 million new homeowners within five years.
He noted that the programme has been decentralized, with projects underway in 200 constituencies and over 700,000 units in the development pipeline.
Ogajo stated that investments in the affordable housing program is creating a multiplier effect, where direct and indirect benefits to the country include job creation, improved health and safety and increased household resilience.
He indicated that the affordable housing program is designed to ensure that low-income earners are able to own homes through the National Tenant Purchase Scheme or rent-to-own payment options.
Ogajo noted that the right to housing is enshrined in Kenya’s Constitution under article 43 (1) (b), which stipulates that all the citizens have the right to accessible and adequate homes and to a reasonable standard of sanitation.