Affordable Housing Program
Housing and settlement is prioritized within the Government’s Bottom-Up Economic Transformation Agenda. The annual housing demand in Kenya is estimated at 250,000 homes. Currently, approximately 50,000 homes are developed annually, predominantly in the high-end market, leaving a deficit of 200,000 homes, particularly in the low-income segment. The Affordable Housing Program addresses this gap by offering Social Housing for individuals earning up to Kshs. 20,000 (approximately $155) per month, Affordable Housing for those earning between Kshs. 20,000 and Kshs. 149,000 (approximately $155 to $1,157) per month, and Affordable Market Housing for those earning more than Kshs. 150,000 per month.
Interventions Made by the Government
- Enactment of the Affordable Housing Act 2024: This Act establishes the Affordable Housing Fund, providing funds and a legal framework for the design, development, and maintenance of affordable housing, institutional housing, and associated social and physical infrastructure. To date, 111,975 units have been completed or are under development through the Affordable Housing Program.
- Access to Affordable Home Financing: The Government aims to provide access to affordable home financing, particularly targeting middle-to-high income earners. As of December 2022, there were 27,786 mortgages in the country, highlighting the limited reach of the mortgage market for the majority of the populace. The Government aims to increase this number to 1,000,000 mortgages under the Affordable Housing Program. The established fund will also offer mortgages at lower interest rates compared to market rates, with specific interest rates to be addressed in the Affordable Housing Regulations 2024, currently under development.
- Creation of Employment and Support for the Manufacturing Sector: Housing development requires labor, services, and goods. Focusing on housing development is expected to generate 3 to 5 direct jobs and 8 indirect jobs for every unit built across the country. Additionally, it will support the formalization of the Jua Kali sector, providing a platform for business growth, enhanced skill delivery to ensure product standardization, and increased business volumes for the manufacturing industry.
- Establishment of the Boma Yangu Platform: The Boma Yangu Platform is an online marketplace for stakeholders in the Affordable Housing Program, including homeowners, developers, financiers, and Micro, Small, and Medium Enterprises. The platform facilitates registration and savings for housing allocations, creating an ecosystem that links industry players and stakeholders in the housing sector—such as property developers, financial institutions (banks and SACCOs), and various government agencies supporting the program. It interfaces with the e-citizen portal for applicant verification, allowing potential homeowners to register and begin contributing towards the purchase of an affordable home.
