Boma Yangu Billions Fuel Fresh Accounting Questions

Housing Principal Secretary Charles Hinga tried to clarify Sh2.56 billion recorded as refunds under the Boma Yangu platform. His explanation has instead triggered more questions about accounting for billions collected through the Affordable Housing Programme.

Hinga addressed journalists on Tuesday. He disputed claims that the full amount represented withdrawals by contributors. Only Sh803.3 million went to savers requesting cash refunds. The remaining Sh1.76 billion involved savings transferred to deposit accounts after unit allocations.

The distinction hinges on the platform’s two-wallet system. Contributors save in one wallet before moving funds to a deposit wallet upon allocation. The system records these transfers under similar labels to actual refunds.

National Housing Corporation officials offered a different view on one major component. They said the Park Road project in Nairobi never operated under Boma Yangu. Buyers pay directly to NHC under a Tenant Purchase Scheme. Units there have been occupied for years.

The State Department breakdown attributes Sh1.62 billion in “refunds” to deposits for Park Road. NHC rejects this. No payments for the estate flow through the platform, according to corporation sources.

This contradiction leaves key details unresolved. If Park Road transactions did not use Boma Yangu, why do official figures link substantial sums to it? Timing also raises issues. Allocations at Park Road began in 2020, well before the current programme expanded.

Hinga maintained the confusion stems from terminology in platform records. Transfers between wallets do not mean savers exited the scheme. They indicate progress toward home ownership.

Earlier reports showed lower refund figures. By May 2025 cumulative refunds stood at Sh788.2 million. The jump to Sh2.56 billion includes reclassified deposits rather than new withdrawals.

Hinga defended the withdrawal mechanism. The Affordable Housing Act allows savers to pull funds after 90 days’ notice. Many later return to the programme. One in five who withdraw resume saving.

The platform has grown significantly. Registered users increased by a quarter of a million. Savings base doubled. Sh1.76 billion converted into actual purchases over 14 months.

Critics see broader transparency gaps. The Affordable Housing Levy has collected substantial sums. Questions persist on how funds move between accounts and projects.

NHC’s position on Park Road highlights coordination challenges. Different arms of government appear to hold diverging records on the same transactions.

Hinga emphasised overall movement toward ownership. Most activity reflects savers completing purchases rather than abandoning the scheme. The programme continues to add participants.

The episode underscores ongoing scrutiny of the flagship housing initiative. Accurate reporting on collections, refunds and allocations remains essential for public confidence.