The Parliamentary Budget Office has issued a warning regarding the government’s affordable housing program, stating that a significant portion of the intended beneficiaries, who are primarily middle and low-income earners, may face exclusion.
According to the findings of the Parliamentary Budget Office, over 70% of the individuals targeted by the program fall into the middle and low-income brackets.
However, it was discovered that high-income earners are likely to benefit more, with 36% of the funds allocated for the construction of institutional housing programs and projects aimed at individuals earning above Ksh.149,000 per month.
Despite the program’s initial promise to uplift ‘hustlers’ living in substandard conditions by providing access to affordable homes and addressing the country’s housing deficit of over 2 million units, concerns have arisen that it may disproportionately favor the privileged.
An analysis conducted by the Parliamentary Budget Office on the Affordable Housing Bill 2023 revealed that homeownership among those earning less than Ksh.50,000 gross income is notably low.
Additionally, while 74% of the population comprises both formally and informally employed individuals, only 60% of the funds have been allocated to their respective categories of housing.
The parliamentary housing committee acknowledged the disparities in allocations raised during a public participation meeting.
“Yes, this was one of the issues that came up during public participation, the concern being the disparity in allocations, and it will be one of the matters that will be debated on,” stated Johana Ng’eno, chairman of the housing committee.
During the public participation meeting, concerns were also expressed about the government potentially redirecting the proceeds from the housing levy to other functions.
Furthermore, the Parliamentary Budget Office expressed concerns that if the housing levy remained nullified and the government continued to face resource shortages, contractual agreements between developers and the government might face challenges.
