The Kenyan government, under the Kenya Kwanza administration, has earmarked a substantial budget of Sh35.2 billion for its Housing program. Treasury CS Njuguna Ndung’u, while presenting the budget proposals, emphasized the government’s commitment to supporting the construction of affordable and social housing units.
Out of the allocated budget, Sh3.2 billion has been dedicated to the affordable housing program. This allocation aligns with President Ruto’s ambitious plan to deliver 200,000 affordable housing units annually to Kenyan citizens.
“To achieve the goal of delivering 250,000 housing units each year and ensure the success of this initiative, I propose that the National Assembly approves the budget allocation of 35.2 billion for the housing program,” stated Ndung’u.
This budget marks an increase from the previous fiscal year, where the program received Sh27.2 billion in funding. Notably, Sh5 billion of the proposed allocation will be directed towards the Kenya Mortgage Refinance Company to bolster its capital and provide funding to primary mortgage lenders.
Additionally, Sh3.2 billion will be allocated for the construction of affordable housing units, while Sh3.5 billion will be channeled towards the development of social housing units.
As of March 2023, significant progress had already been made, with 46,027 affordable housing units under construction across nine sites, creating approximately 43,000 employment opportunities for young people.
President Ruto has been actively launching housing projects both within and outside Nairobi. Seven ongoing affordable housing projects are expected to yield 31,990 units within Nairobi.
One of the notable projects, Kibra’s Soweto B, was inaugurated by President Ruto in October 2022. It represents a substantial social housing effort in an informal settlement and is part of a comprehensive slum upgrade initiative led by the Ministry of Housing.
In Mukuru kwa Reuben, a Sh15 billion project launched by Ruto is set to provide 15,000 units. The land for this project was reclaimed from cartels by the Ethics and Anti-Corruption Commission after being grabbed 24 years ago. The recovered land, valued at over Sh5 billion, will now serve the public with affordable housing.
President Ruto also presided over the groundbreaking of the Shauri Moyo affordable housing project in Nairobi in January 2023. This project, undertaken by Epco Builders Limited, will construct 3,248 housing units at a cost of Sh10 billion.
The government remains committed to other housing endeavors, including the Starehe project that will offer over 6,000 housing units, the Pangani Housing Project, which will deliver 1,562 units, and the ongoing construction of 5,280 units at Clay City, Nairobi. Additionally, a Sh850 million housing project in Kasarani will result in the construction of 284 units. The transformation of Jevanjee estates, formerly known as Bachelor quarters, is underway, with plans to develop 1,900 units on land previously occupied by 81 houses.