Nairobi, June 24 ; The government is seeking to raise Ksh129 billion for the Affordable Housing Program through the Nairobi Securities Exchange (NSE) in a bid to meet its housing targets.
The government has collected approximately Sh120 billion through the affordable housing levy and has already spent Sh90 billion on housing projects across the country.
Housing Principal Secretary Charles Hinga said the funds are actively supporting the construction of over 148,000 housing units, with even more planned nationwide.
He was speaking while appearing before the National Assembly Departmental Committee on Housing, Urban Planning and Public Works during a meeting held at the Serena Hotel in Mombasa.
“But as we move forward and the number of completed units increases, payments for these houses are also rising. We anticipate a time when the inflow from house payments will exceed what we collect from the levy,” Hinga said.
PS Hinga revealed that the government is seeking alternatives to finance the project and will be looking in the Nairobi Securities Exchange to source Ksh 129 Billion.
Hinga, stated that the funding would be sourced through the NSE using Sukuk bonds and the Real Estate Investment Trusts (REITs)
He explained that the move was vital given that the current money raised through the Affordable Housing Levy cannot help the government meet its target of 200,000 houses per year.
Currently, the government collects close to Ksh79 billion annually through the levy.
“We need about Ksh400 billion a year to meet our target of 200,000 units every year. The Affordable Housing Levy brings in about Ksh72 billion annually at most. So we have quite a huge gap,” said Hinga.
“We’re looking at going to the market next year and raising about $1 billion (Ksh129 billion) through a Sukuk bond and Reits listed on the Nairobi Securities Exchange.”
Housing units.
Hinga reported that the affordable housing initiative has so far delivered more than 200,000 units, with 148,000 currently under active construction. He said a further 700,000 housing units have been planned, with specific locations and land parcels already identified.
“We are operational in 44 out of 47 counties. For the remaining three, we have advertised tenders. So, it’s only a matter of time before all counties are fully covered,” he said.
The PS described the programme as a key driver of economic growth due to its extensive value chain.
“Almost every component of a house—whether it’s a bulb, a socket, a hinge—can be an industry by itself if done at scale,” Hinga said.
To boost local manufacturing, the ministry noted that it has ring-fenced Sh11 billion for jua kali artisans to supply three main construction items—doors, windows and balustrades. He added that 69 different components had been identified for local production.
Hinga also highlighted increased demand for elevators within the programme, revealing that government projects alone now require 2,750 lifts compared to the national average of 750 before the initiative.
“That’s almost four times the national demand. We are now inviting global lift manufacturers to set up local assembly plants or even full-scale production facilities in Kenya to meet this demand and create technical jobs,” he said.
2025-26 Housing Budget.
The government has allocated Sh3.5 billion in the 2025/26 financial year budget for the construction of housing units for the National Police Service and Kenya Prisons, more than three times the Sh1 billion provided in the 2024/25 fiscal year.
In addition, Sh454 million will support the construction of county headquarters.
The housing, urban development, and public works sub-sector has received a substantial budget increase, with Treasury Cabinet Secretary John Mbadi allocating Sh128.3 billion for 2025/26, up from Sh92.1 billion in the previous financial year.
Of the total allocation, Sh64.5 billion has been set aside specifically for the construction of affordable housing units, nearly double the Sh32.5 billion allocated in the 2024/25 budget.
Other significant allocations include Sh13.4 billion for the Kenya Urban Programme (KenUP), Sh10.5 billion for social housing, and Sh16.5 billion for social and physical infrastructure.
An additional Sh7.2 billion will fund the second phase of the Kenya Informal Settlement Improvement Project. A further Sh500 million has been allocated to build climate resilience for the urban poor, and Sh184 million will go towards constructing footbridges.
To ensure safety and quality within the building industry, Sh2.6 billion has also been allocated for the regulation and development of the construction sector.
Boma Yangu Portal.
In April 2025, the government released nearly 5,000 affordable housing units to the public.
Boma Yangu recorded a surge in activity following the announcement.
According to the Ministry of Housing, more than 500,000 Kenyans had expressed interest in the first phase of the project.
The units were priced at Sh640,000 for a studio, Sh960,000 for a one-bedroom, and Sh1,280,000 for a two-bedroom apartment.
Lower deposit.
Recently, the government agreed to lower the deposit requirement for salaried workers purchasing homes through the programme, from 10 per cent to five per cent. This followed consultations with the Central Organisation of Trade Unions (COTU), which had raised concerns over the funds being used outside their scope.
Hinga acknowledged concerns raised by workers who felt they were being subjected to the same interest terms as non-contributors. He assured the committee that ownership is guaranteed once payment is completed.
“If you complete your payments over 13 years, you will get the title deed. That’s generational wealth. It’s how we build a nation—families inheriting homes,” he said, likening the model to the “American Dream.”
To make the homes more accessible, individuals earning less than Sh25,000 monthly can apply for deposit support through the Affordable Housing Board. Meanwhile, those earning between Sh20,000 and Sh150,000 are eligible for fixed-rate mortgages at six per cent, well below commercial rates, which average around 15 per cent.
The government has set an annual target of 200,000 units, aiming for a total of one million over the next five years.
