By D, KNA
The Civil Servants Housing Scheme Fund (CSHSF) is set to roll out new policy changes aimed at making home ownership more accessible and affordable for public servants across the country.
Speaking during a public participation forum in Isiolo, the Deputy Director of CSHSF, Robert Njiraini, said the reforms are designed to enhance flexibility, increase funding limits and address concerns raised by beneficiaries.
The CSHSF is specifically tailored for civil servants working under the National Government, offering financial assistance in the form of low-interest loans to purchase, construct or improve residential properties. Eligible employees, including police officers, can under the proposed changes access loans ranging from Sh4 million to Sh20 million, repayable over 20 years at a competitive interest rate of four percent per annum on a monthly reducing balance.
Njiraini announced that the scheme proposes increasing funding from 90 percent to 95 percent of a property’s value, effectively reducing the required down payment from 10 percent to five percent. The adjustment is expected to lower entry barriers and enable more civil servants to qualify for home financing.
Additionally, beneficiaries will soon be permitted to sell their homes five years after fully repaying their loans, a significant reduction from the current eight-year restriction.
The Fund is also undertaking construction and sale of housing units in various parts of the country, including Machakos, Embu, Ruiru, Thika, Starehe and Shauri Moyo, as part of efforts to bridge the housing gap among public servants.
Njiraini further encouraged civil servants to explore opportunities under the ‘Boma Yangu’ platform linked to the government’s Affordable Housing Programme, noting that it provides an additional pathway to home ownership.
During the forum, he emphasized the importance of involving spouses in loan repayment planning to ensure financial stability. He revealed that additional income streams, such as business earnings, will now be considered when assessing repayment capacity, broadening access to the Fund.
Participants, however, raised concerns about existing housing projects and called for increased awareness campaigns, particularly targeting younger employees eager to benefit from the scheme. Some older civil servants regretted missing earlier opportunities due to limited information.
Concerns were also expressed regarding the Affordable Housing Levy, with some participants arguing that certain housing units are too small and fall short of expected comfort standards.
Criticism was directed at the first phase of a housing project at LMD in Isiolo, which some said is located far from essential amenities and faces security challenges.
Despite the concerns, the CSHSF reaffirmed its commitment to improving housing conditions for civil servants and promoting sustainable home ownership within the public sector.