The Ministry of Lands, Public Works, Housing, and Urban Development has announced government plans to raise the monthly rent for all government-owned residential houses. The proposed increase, set at 10%, is expected to take effect from next month.
Charles Hinga, Principal Secretary of the State Department for Housing and Urban Development, conveyed this decision in a formal letter addressed to Dr. Chris Kiptoo, his Treasury counterpart.
Hinga emphasized that the notice regarding this rent increment had been originally issued on January 18, 2021. This marks the first change in rent on government residential houses in nearly two decades.
In his letter, PS Hinga further stated, “The State Department for Housing and Urban Development on 18th January 2021, wrote to the National Treasury, notifying the Treasury and the respective Ministries, Departments, and Agencies that benefit from the provision of Government Housing, of an increase in the rent paid for Government Residential Housing by 10%.”
High cost of living in Kenya
PS Hinga went on to highlight the long-standing stagnation of rent rates since 2001 for most government-owned housing units.
Hinga argued that this rent adjustment serves as an avenue to bolster the Appropriation In Aid (AIA) for the State Department. He referenced discussions from a meeting held on September 22, 2023, where the importance of enhancing AIA for the State Department was underscored.
The Principal Secretary concluded by seeking Dr. Kiptoo’s concurrence on the matter, stating, “This is to, therefore, seek your concurrence to adjust Rent Rates for Government Residential Housing by 10% commencing 1st November 2023,” Hinga concludes.
This decision to increase rent for government residential houses has been met by Kenyans with mixed reactions. This is because it will affect a wide range of government employees and departments relying on these housing facilities.
Cheap government-owned housing units have been affordable for civil servants currently grappling with the high cost of living in Kenya.
The upcoming changes will undoubtedly have financial implications for both government workers and the Ministry itself.
