High county approval costs hindering affordable housing, expert says

Housing Units under construction in Bondeni, Nakuru County. [Kennedy Gachuhi, Standard]

High housing approval costs across counties are slowing the delivery of housing units, a property expert has said.

Stephen Kuria said non-uniform approval fees in the 47 counties were among the key barriers facing private developers, making it harder to provide affordable homes to Kenyans.

He noted that inconsistent regulations, high approval costs, and limited risk-sharing mechanisms have discouraged private sector participation in the housing sector.

Kuria said policy shifts over the past four years had created uncertainty for developers, while approval processes remained uneven across counties. As a result, some developers have redirected capital to less-regulated and higher-margin projects.

“The major problems preventing private sector participation include inconsistent regulations, high housing approval costs, and limited risk-sharing mechanisms,” he said.

He added that unpredictable returns and complex approval procedures have slowed investment in affordable housing projects.

The National Housing Corporation estimates that Kenya needs about 200,000 new housing units annually to match population growth and urbanisation. The country currently faces a housing deficit of about two million units.

Meanwhile, the Ministry of Investment, Trade and Industry says the proposed Trade Development Bill 2025 seeks to harmonise levies and charges across counties, including those related to housing approvals.

Secretary for Trade Michael Mando said the bill, now under public participation, aims to ensure businesses pay similar levies across devolved units to ease operations and encourage investment.