Kisumu: The government has made a significant appeal to private sector participants to bolster Kenya’s Affordable Housing Programme amidst an alarming Sh326 billion annual financing shortfall. Lands, Housing, and Urban Development Cabinet Secretary (CS) Alice Wahome highlighted this issue during the 4th Kenya Affordable Housing Conference (KAHC 2025) in Kisumu, where she underscored the need for Sh400 billion annually to achieve the target of 200,000 affordable housing units per year, against the current Sh74 billion raised through the housing levy.
According to Kenya News Agency, Wahome emphasized that the financing gap presents an opportunity for the private sector to engage actively. She announced the government’s exploration of partnerships with commercial banks, retirement benefit schemes, mortgage schemes, SACCOs, development partners, and the broader business community to mobilize the necessary resources.
Wahome further elaborated that the ministry has crafted affordable housing regulations to amplify efforts in enforcing the housing levy, aiming to secure additional resources, particularly from the informal sector. “We are mainly collecting from the pay slip but the regulations allow us to look for funds from every Kenyan who has an income who will also be able to purchase the units,” she remarked. This initiative is part of the government’s strategy to deliver one million affordable housing units by 2027, with 170,000 units currently under construction nationwide and projects worth Sh600 billion in the pipeline.
In a bid to streamline processes, the ministry has initiated the digitisation of land records via the Ardhisasa platform, operational in Nairobi and Murang’a, with plans to expand to 10 more counties within the year. “At the policy level, we are undertaking a comprehensive review to update and harmonise land laws. Our goal is to create a secure, transparent, and inclusive housing ecosystem that works for every Kenyan,” Wahome added.
Housing Secretary Said Athman assured that the project implementation is on track, with over 3,000 units already handed over. He noted that from January next year, more units would be delivered monthly, and contractors have been instructed to implement night shifts to expedite the project. The housing programme is also a significant job creator, having generated 300,000 jobs, with expectations to reach 900,000 by year-end as construction hours extend.
Moreover, Athman announced the advertisement of 4,000 internship opportunities for young professionals in the building industry, aiming to create more jobs. Nonetheless, he acknowledged challenges such as scarcity of construction materials, limited local manufacturing capacity, and underutilisation of contractors due to the unprecedented scale of the construction sector.
The two-day conference, organized by the Kenya Mortgage Refinance Company (KMRC), attracted hundreds of stakeholders from various sectors, including international delegates from India, Malaysia, Pakistan, Tanzania, and Uganda. KMRC CEO Johnstone Oltetia reported disbursing over Sh21.4 billion in low-interest, long-term funding, facilitating 4,500 affordable home loans across 39 counties. He stressed the necessity of housing solutions that meet the needs of the 80 per cent of Kenyans employed in the informal sector.
Kisumu Governor Prof. Anyang’ Nyong’o emphasized the pivotal role of counties as equal partners in delivering affordable housing, as outlined in the 2024 Affordable Housing Act. He cited ongoing flagship projects in Kisumu and advocated for effective coordination between county and national governments to ensure a unified housing vision and maintain investor confidence. The conference will continue with discussions on green housing, financing models, land digitisation, and global best practices.
