Ruto rolls out Sharia-compliant housing financing for Muslims

President William Ruto during a meeting with Sheikhs and Imams at State House, Nairobi on August 5,2026. [PCS]

President William Ruto has announced an interest-free, Sharia-compliant financing model under the Affordable Housing Programme, allowing Muslims to buy homes without violating Islamic principles.

Speaking on Wednesday, August 5, at State House, Nairobi, during a meeting with Muslim leaders, including sheikhs and imams, Ruto said the Constitution guarantees equal access to affordable housing for all Kenyans and that the new model removes a long-standing barrier for Muslim homebuyers.

“The Constitution provides that these houses are for all Kenyans. We have put in place a Sharia-compliant financing model, and Muslims will be able to own houses in line with Islamic law,” said Ruto.

The directive replaces the standard financing model, which charged a 3 per cent interest rate on home loans.

The government said the new option addresses concerns over riba, or interest, which Islamic law prohibits, after the previous arrangement discouraged applications in Muslim-majority counties.

Ruto also said the Ministry of Education is preparing a policy and legal framework to recognise madrassa and duksi education within Kenya's formal education system.

“I have directed the Ministry of Education to develop a policy and the necessary legal framework so that madrassa and duksi become part of Kenya's formal education system,” said Ruto.

At the same time, the President defended his administration's decision to abolish extra vetting for national identity card applicants in northern and border counties, saying the move ended discrimination and upheld constitutional equality.

“Every Kenyan should be treated equally. We are all recognised equally under the Constitution of Kenya,” noted Ruto.

In February 2025, Ruto signed a proclamation ending decades of additional vetting for identity card applicants in northern and border counties.

The government said the change was meant to eliminate discrimination and ensure equal access to citizenship documents.

Ruto said his administration's development agenda is based on inclusion, adding that areas that were previously marginalised are now benefiting from major government projects.

He cited the construction of the Sh100 billion Isiolo-Mandera road, affordable housing projects, markets, hostels, the rollout of the Social Health Authority and the recruitment of teachers as part of efforts to improve access to services in the region.