President William Ruto’s ambitious Affordable and Social Housing Agenda, a central component of his Kenya Kwanza Alliance manifesto, is aimed at tackling Kenya’s housing crisis and generating employment opportunities for up to a million people annually.
The housing initiative, a key pillar of the Bottom-Up Economic Transformation Agenda (BETA), not only promises to enhance the quality of life for citizens but also serves as a catalyst for economic growth and job creation.
Zachariah Njeru, the Cabinet Secretary for Lands and Housing, emphasizes that the affordable housing program is essential to bridge the housing deficit gap in urban areas.
Currently, the demand for housing stands at 250,000 units per year, while the market supplies only 50,000 units, with a mere 1 percent allocated for low-income earners. The program seeks to fill this significant housing gap.
In the 2023-24 fiscal year, the government allocated Sh35.2 billion to the Housing program, demonstrating its commitment to the initiative.
Additional resources have been mobilized to support the construction of affordable and social housing units, with Sh3.2 billion allocated specifically for the affordable housing program.
The President’s ambitious goal is to construct 200,000 affordable housing units annually, thereby creating between 600,000 and one million jobs each year.
However, in his first year in office, Ruto has initiated the construction of approximately 40,000 units, leaving a considerable shortfall of 160,000 units.
Some of the noteworthy housing projects initiated under President Ruto’s leadership include the Starehe Affordable Housing project in Nairobi, which aims to produce 6,000 units and generate 14,000 jobs. The Shauri Moyo A project, presided over by President Ruto and awarded to Epco contractor, also plans to create 6,000 units and 10,000 jobs directly and indirectly.
The Mukuru kwa Reuben project, covering 55 acres of land recovered by the Ethics and Anti-Corruption Commission, will result in the construction of 15,000 affordable housing units in Nairobi.
In Machakos County, the Mavoko Housing Project, a Sh20 billion venture involving collaboration between the national government, the county government, and the private sector, is set to create 15,000 job opportunities while constructing 5,300 housing units.
Kiambu County has also witnessed affordable housing programs in Thika and Ruiru, with the Thika Project generating 975 units and the Ruiru project delivering 1,050 housing units.
Furthermore, the government has rolled out the affordable housing program’s 200 projects per constituency, as promised by President Ruto. Currently, 178 subcounties have received approval to construct these units, with land available in all 290 constituencies.
To fund these initiatives, President Ruto successfully passed the Finance Bill 2023, imposing a mandatory 1.5 percent Housing Tax gross salary deduction from both employees and employers. Although the bill faced opposition during public participation and in Parliament, it eventually became law after presidential assent and a failed legal challenge.
Recently, President Ruto’s housing agenda received a significant boost with the launch of the Building Climate Resilience of the Urban Poor Initiative during the Africa Climate Summit 2023, highlighting the government’s commitment to addressing housing challenges and climate resilience simultaneously.
