Nairobi: The Government is targeting completion of 45,000 affordable housing units nationwide by the end of the year, as it moves to expand access to long-term and affordable financing for prospective homeowners.
According to Kenya News Agency, Principal Secretary for Housing and Urban Development Charles Hinga, speaking at the Kenya Affordable Housing Conference (KAHC) 2026 in Naivasha, stated that the Affordable Housing Programme has moved beyond policy and is now driving construction, job creation, and economic activity across the country. Hinga revealed that more than 280,000 units are currently under construction nationwide at a contract value of approximately Sh731.5 billion, with an additional Sh300 billion in contracts pending approval. This development is expected to push the total value of housing contracts under construction beyond Sh1 trillion.
Hinga emphasized that the programme has generated between 640,000 and one million direct and indirect jobs, stimulating demand for cement, steel, timber, transport, plumbing, fabrication, and professional services. He noted that the programme’s success should not be measured solely by the number of houses built but by the ability of Kenyans to afford and own them.
He further challenged the Kenya Mortgage Refinance Company (KMRC), banks, Savings and Credit Cooperative Societies (SACCOs), pension funds, insurance companies, and development partners to collaborate in lowering mortgage rates and expanding access to affordable housing finance. Hinga described the housing programme as an economic transformation instrument capable of building industries, transferring skills, and creating employment.
Plans for local manufacture and assembly of housing components were cited, with the Government seeking to attract international manufacturers to establish production facilities in Kenya. Housing developments are being paired with essential infrastructure, including water, sanitation, electricity, schools, health facilities, roads, recreational facilities, broadband connectivity, and clean cooking solutions.
Hinga announced that the Government will make 45,000 housing units available to the market between now and December, valued at approximately Sh52 billion, urging banks and SACCOs to assist prospective homeowners in accessing financing. He projected that these 45,000 units could generate approximately Sh1.5 billion in origination fees for financial institutions, with the housing finance portfolio potentially growing from Sh52 billion to about Sh200 billion within 12 months.
KMRC Chief Executive Officer Johnstone Oltetia stated that the company is focused on bridging the gap between housing supply and Kenyans’ ability to purchase homes. KMRC-backed home loans attract single-digit interest rates of between nine and 9.5 percent, with repayment periods extending up to 25 years at fixed rates.
Oltetia highlighted that KMRC, established five years ago, has mobilized Sh27 billion and is issuing a Sh3 billion sustainability bond, bringing its total loan portfolio to Sh30 billion for prospective homeowners seeking properties valued between Sh4.5 million and Sh10.5 million. He noted that efforts to lower interest rates have enabled more than 6,200 Kenyans to access the loans, with demand continuing to rise.
He reported that the number of mortgages nationally has grown from about 25,000 when KMRC began operations to more than 30,000, with the outstanding mortgage value now exceeding Sh280 billion. KMRC has also established mortgage guarantee arrangements for low-income earners, matching their financial capacity against KMRC guarantees. The company plans to tap into the Affordable Housing Programme to help more Kenyans access low-interest mortgages, particularly as the 280,000 units under construction near completion.
According to data from the Boma Yangu platform, 1.26 million Kenyans have registered, with members saving more than Sh5.2 billion towards housing deposits. The programme has also benefited the Jua Kali sector and micro, small, and medium enterprises, with the Government earmarking more than Sh11 billion to supply critical inputs.
Nakuru County Executive Committee Member for Lands, Physical Planning, Housing, and Urban Development John Kihagi remarked that the county is working with the national government and the Affordable Housing Board to ensure projects are established within properly planned and serviced communities. He mentioned that the developments would incorporate essential services and facilities, including schools, hospitals, water, sewerage, and market facilities.
